Capturing timer value based on external interrupt , leveraging the 62.5nsec (16MHz) resolution) of the ATMEGA328 on the Arduino Uno

You are getting the value from ICR1 but in the ISR you saved the value in dlyTime.

You are enabling the Timer1 Overrflow Interrupt but you didn't define an ISR for that interrupt.

I don't THINK it's a problem but I would take the 'return;' statement out of the ISR.

In your ISR you stop the counter but I don't think that will prevent the ISR from triggering again if the analog compare triggers again.