This is the usual form of the name Elizabeth in Spain and Portugal, though elsewhere it is considered a parallel name, such as in France where it is used alongside Élisabeth. The name was borne by two Spanish ruling queens, including Isabel of Castile, who sponsored the explorations of Christopher Columbus.
In the United States this form was much less common than Isabel until the early 1990s, when it began rapidly rising in popularity. It reached a peak in 2009 and 2010, when it was the most popular name for girls in America, an astounding rise over only 20 years.
A famous bearer is the Italian actress Isabella Rossellini (1952-).