The characters combine literally and powerfully: “Women and children all know.” The choice of “women and children” is not random; it is a deliberate rhetorical device to emphasize the absolute ubiquity of the information. It's not just known by scholars or officials—it's known by everyone, without exception.
妇孺皆知 is still a very common and useful idiom in modern Mandarin. It is used in both formal contexts (news, literature) and everyday conversation.