(1) is the name of an ancient ceremonial mound in Biarritz in the French Basque country.
*(4) Frank Joseph has suggested[104.33] that Atalya or Atalia was, through time, transformed into Italy, adding that Atalia means ‘Land of Atlas’. This entry in The Atlantis Encyclopedia has been copied on a number of websites.*
However, the etymology of ‘Italy’ is not clear, but the most common proposal is that “Latin Italia may derive from Oscan víteliú, meaning “[land] of young cattle” (Latin vitulus “calf”, Umbrian vitlu), via Greek transmission (evidenced in the loss of initial digamma). The bull was a symbol of the southern Italic tribes”(b). In passing I should mention that Plato tells us that the Atlanteans who controlled southern Italy as far as Tyrhennia(c) also had a bull cult.
At their best, none of these references can be offered as having anything more than the most tenuous link with the original Atlantis.
Also See: Atalaia
(c) Timaeus 25b & Critias 114c