Alright thanks everyone! Unfortunately I dislike Lola. I'm looking for three syllable names and like older names. I though Dolores might be pushing it too far so that's why I was looking for a nn. Dolores has proven to be a hard name to find nicknames that I like. Thanks for all the comments though. Looks like I'm going to have to keep looking!
If I were in your position, I would pick Dolly or Dot as a nickname for Dolores over naming her Lola. Dot & Dolly are both adorable! Dot is high on our list of names, but we haven't been able to figure out the best full name for it because Dorothy doesn't sound great with our last name. I think it's really sweet that you want to honor your grandmother, and I think Dolores would make a great middle if you don't decide to use it as a first name.