Student or Learner
One lady wanted to ask another one about something, but she thought to herself:
Silly as it seemed, in the circumstances such words would sound impolite, slightly crazy.
Does it mean: It seems silly to ask about it in such circumstances. It would sound impolite and crazy.
The silliness doesn't refer to the saying; it refers to the judgement about the saying. That is, it wouldn't 'be silly to say that sort of thing', it was silly to think of saying that sort of thing... I'm not making much of a fist of this; would some other teacher try...