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The Oxford Dictionary of Place-names (1998) only has WILLEY, not WILEY. This is explained as "willow-tree wood or clearing". But WILLEY in Surrey has a different origin: Weoleage (909) meant "sacred grove with heathen temple" (Old English "weoh"). I think, as you say, Will(iam) + "ley" (or without as you propose) is not a bad idea either.

Andy ;—)