Sure it can be done, and it has an R-value of about 1 as it is 3/8" or 1/2" thick.

Yup,it can be done but I would think twice before doing it. You will notice the siding is only held in place with very few small nails which will not support much more weight if it's glued over it. Nailing through the old siding will crack it and release asbestos dust each time it's cracked.

Agree with Klem1. Best option is to remove the siding (correctly) then assess the structure before proceeding to add exterior real foam insulation and new siding. You may find all kinds of structural issues under the siding. Like the sill plate is actually rotted away and one single 2x4 is holding up the whole corner of the house. Etc. It's an 1890 house. SOMETHING will need addressing under that dreck. It always does in an old house.

Asbestos siding removal may be relatively simple in some areas. Where I live if a contractor removes it, certification is required. If I remove it myself, I take it off and pile it at the curb. Doing it safely is not really a big deal. You just need a little self education and a methodical approach.