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-).
This was the name of a 13th-century Italian saint who made clothes for the poor. As an English name, it has never been common.