The Collaborative International Dictionary of English v.0.48:

Capability \Ca`pa*bil"i*ty\, n.; pl. Capabilities.
   1. The quality of being capable; capacity; capableness; esp.
      intellectual power or ability.
      [1913 Webster]

            A capability to take a thousand views of a subject.
                                                  --H. Taylor.
      [1913 Webster]

   2. Capacity of being used or improved.
      [1913 Webster]