alt Hacker News"Ye Olde Mill" or whatever archaic silliness you'll find at fairs and whatnot was the result of the printing press dropping þ (as in þe, þ is just th-) and was never supposed to be pronounced with a "y" sound.
"Ye Olde" ye was not the same word as "Hear ye, hear ye!", that ye is a plural 'you' basically the same word as "y'all" and never had a thorn.
Just to expand on this:
"ye" in "ye Olde mill" is actually just "the" but originally "þe"/"þee". The first printing presses to England were imported from Germany, which never used þ, so printers used something that looked sorta similar, thus "y".
"Ye" was a different word, the 2nd person non-formal version of "you" (which was historically formal: see-Shakespeare and how he played with "ye" and "you"). Thorn was on its way out along with "ð" both of which were in Middle English. The sounds didn't leave English, but we merged it into one letter cluster "th" (think "that" and "the", which have different th sounds).