The word 'nice' used to mean 'foolish' in the 13th century

Semantic change — the way word meanings shift over time — is one of linguistics' most fascinating phenomena. 'Nice' entered English from Old French 'nice' (foolish, ignorant), derived from Latin 'nescius' (ignorant). By the 14th century it meant 'lascivious', by the 15th 'coy or reserved', by the 16th 'precise or careful', and by the 18th 'pleasant and agreeable' — the modern meaning. 'Awful' once meant 'inspiring awe' (compare 'awesome'); 'villain' meant 'peasant'; 'bully' meant 'sweetheart'. Language is never static; its meanings drift continuously with use.

Source: Liberman, An Analytic Dictionary of English Etymology (2008)