1

He applies a liberal coat of glue, spreading it with a putty knife for complete coverage.

In this sentence what is meaning of liberal coat? It means using glue freely or sufficientrly?

3

In this context, it means more than enough.

"Conservatively" means the opposite, as in trying to save as much glue by using as little as possible.

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2

Basically, yes—using it without much restriction. More precisely, liberal here means being used in generous amounts. See definition #4 in the English Oxford Living Dictionaries. As an example, consider the following sentence:

Chemical products were used liberally over agricultural land.

This means that chemical products were used in large or generous amounts as though there were no restrictions on how many of them should have been used.

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