Two days after Kate Middleton gave birth to a baby girl, she and Prince William have decided to officially name their daughter Charlotte Elizabeth Diana in accordance with British tradition.

The announcement was made on Twitter in London by Kensington Palace on Monday. According to Maria Puente of USA Today, great-grandmother Queen Elizabeth II and other senior royals were notified first before her name was released to the public.

"The Duke and Duchess of Cambridge are delighted to announce that they have named their daughter Charlotte Elizabeth Diana," Kensington Palace wrote.

The palace also issued the royal baby's official title on Twitter.

"The baby will be known as Her Royal Highness Princess Charlotte of Cambridge," Kensington Palace wrote.

Puente reported that the baby was born on Saturday at 8:34 a.m. London time, weighing 8 pounds, 3 ounces. She will be fourth-in-line to the throne.

"The couple also tweeted their thanks to the hospital staff for their care and to everyone else, including President Obama and Prime Minister David Cameron, for their warm wishes," Puente wrote.

USA Today looked at the significance and meaning behind the baby's new name.

"The three names are both traditional and sentimental: Elizabeth for her great-grandmother and her great-great grandmother. Diana for Will's late, beloved mother," Puente wrote.

According to Puente, her first name, Charlotte, was derived from her paternal grandfather, Charles. The name has previously been used to name past princesses and queens.

"Naming the queen's fifth great-grandchild after William's late and much-loved mother, Princess Diana, was considered less likely because it's not a traditional royal-family name used by multiple ancestors," Puente wrote.

According to Puente, the Duke and Duchess of Cambridge are expected to take their family to Anmer Hall, a country retreat located on the royal Sandringham estate in Norfolk. Katie Kindelan and Carolyn Durand of ABC News noted that it was located in a quiet, small town atmosphere.

"There's a huge amount of private space there," royal commentator and writer Roya Nikkhah said. "There's an enormous garden. There's tennis, there's swimming -- but all in one place."

ABC News reported that the 10-bedroom home has undergone nearly $2.5 million in renovations, which included a conservatory, a new kitchen and a new roof. The estate also had personal significance for the prince.

"William's mother, the late Princess Diana, was born on the Sandringham estate, a stone's throw from Anmer Hall, in 1961," Kindelan and Durand wrote. "Diana was raised in the estate's Park House and her family rented the property for many years from the royal family until the Spencers moved to their ancestral home, Althorp."

Nikkah told ABC News that the prince is following in the footsteps of his mother by trying to provide some privacy for his family. It is also close to his job, where he works as an air ambulance helicopter pilot.

"It's a kind of completely enclosed childhood," Nikkhah said of Anmer Hall. "And I think that's what William and Kate, particularly William, wants for his children. He wants to have that incredibly normal life that's completely private, that's away from the spotlight."