What is the consensus for the name [name]Elvin[/name] (think [name]Orlando[/name] Bloom, LOL) nn Elf? Nameberry has it as retired, but I think it is unusual without being too weird. My daughter will probably not like it, but I do!
I really like [name]Elvin[/name] for the elf reference. It was on our long list. It actually was only weeded out because, well the list was way too long, and because I was afraid people would think [name]Alvin[/name] (think chipmunks). Another elfish name on our list was [name]Elvio[/name].
If you want an Elf reference, I think it’s better to be more subtle -that way, you will not end up inadvertently turning your daughter or granddaughter against elves or LOTR or etc. Name the baby [name]Oliver[/name] =“elf army” according to babynames.com but, I guess your daughter is expecting a girl? Here are some girls’ names with references to elves. 
girls’ names whose meanings have a reference to elves (according to babynames.com)
[name]Elwyn[/name]
[name]Oliva[/name]
Livi
Alary
[name]Avery[/name]
[name]Faye[/name]
girls’ names whose meanings have a reference to elves according to Nameberry
[name]Maurelle[/name]
[name]Aubrey[/name] = elf ruler according to NB or elf power according to behindthename.com
[name]Aubrey[/name] & [name]Elwyn[/name] are my favorite.
Sorry… I’m not sure why I thought your grandbaby was definitly a girl. Anyways, you can also find boy names with elf references by doing a “Super search” on Nameberry or an advanced search on babynames.com or searching for “meaning” instead of “names” on behindthename.com
I guess I should have clarified, we don’t know yet what she is having, but she has her girl name picked out [name]Riley[/name] [name]Michelle[/name]. [name]Riley[/name] because they both like it and [name]Michelle[/name] for a friend of hers who died in an accident.
I hit her with [name]Elvin[/name] this morning and she did not like it (already does not like [name]Oliver[/name], another name I like) She said she liked [name]Alvin[/name] better and I brought up the Chipmunk reference! HAHA’
I mentioned the LOTR and she said if that was the case she would name him Legolas (sp)
lol Logolas is a great LOTR character, but everyone would immediately know where it came from. 
Too bad she doesn’t like [name]Oliver[/name]. Well… if she has 'til [name]January[/name] to think about it, they may very well change their minds several times in the next few months!