Antique Tunic

Wondering if anyone can help me identify what type of clothing this is, era, etc. This was found in my Grandmother's things and we think that it must have held some significance to the family or it would have been cut up and used for a quilt or another article of clothing once it outlived it's usefulness in it's first life. There have been several theories as to what it is -from a sleep shirt to a baptismal gown. We assume that it belonged to my Great Great Grandmother who came to the United States from Italy around 1913 if I remember correctly. Her initials were R.P. but the initials on the are transposed on the tunic -if it had been sewn in Italy would it have been tradition to transpose the initials? It is obviously adult in size and machine sewn of a cotton canvas type material. All the seams are French seams and the crocheted lace on the collar and the sleeve edges is handmade.