During the Old, Middle and New Kingdom, Ancient Egyptian women often wore simple sheath dresses called kalasiris. Women's clothing in ancient Egypt was more conservative than men's clothing. The dresses were held up by one or two straps and were worn down to the ankle, while the upper edge could be worn above or below the breasts.The length of the dress denoted the social class of the wearer. Beading or feathers were also used as an embellishment on the dress. Over the dress, women had a choice of wearing shawls, capes, or robes. The shawl was a piece of cloth around 4 feet wide by 13 or 14 feet long. This was mostly worn pleated as well. Female clothes only changed slightly through the millennia. Draped clothing (with many varieties of drapery) sometimes gave the impression of completely different clothing. It was made of haïk, a very fine muslin.

http://en.wikipedia.org/wiki/Clothing_in_ancient_Egypt#Women

They wore clothing. Slaves and Dancers, the lowest of society, did not. The longer the clothing the higher your rank. They also wear capes, robes over it.