Free man
Kharlee is a modern phonetic spelling of Carly, which is a feminine diminutive of Charles. It ultimately derives from the Germanic word 'karl', referring to a free person who was not of noble birth but possessed rights.
Less common today
Kharlee isn't in the latest US Top 1000. It last peaked at #11,250 in 2019.
US births per 5-year period, 1990βpresent (SSA data).