If you say that something will do nicely, you mean that it is good enough for the situation. A shirt and jersey and an ordinary pair of trousers will do nicely, thank you
If something is happening or working nicely, it is happening or working in a satisfactory way or in the way that you want it to. She has a bit of private money, so they manage quite nicely The crowds had been soaked and were now nicely drying out. see also nice
pleasantly; well; softly, gently; kindly; skillfully; in a fastidious manner (older usage)