I am trying to solve Dido's isoperimetric problem, more specifically, the version where we have to maximize the area under a curve, given that the two endpoints are on the x-axis, and given a fixed arclength:
That is, we have to maximize $$J(y)=\int_a^by(x)dx$$ subject to constraint $$C(y)=\int_a^b\sqrt{1+(y'(x))^2}dx$$ Where we assume $a$ is fixed, but $b$ is allowed to vary.
Am I solving this correctly?
Besides the boundary constraint (because of variable boundary $b$) $L_{y'}(b)=0$, we of course formulate the Euler-Lagrange equation $L_y=\frac d {dx}L_{y'}$, based on $J$ subject to the constraint $C$, so that the Lagrangian becomes:
$$L(y,y')=y(x)+\lambda\sqrt{1+(y'(x))^2}$$
Therefore: $$L_y=1$$ $$L_{y'}=\lambda \frac {y'(x)} {\sqrt{1+(y'(x))^2}}$$ $$\frac d {dx} L_{y'}=\lambda y''(x)\left(\frac {1} {\sqrt{1+(y'(x))^2}}-\frac {(y'(x))^2}{\left (1+(y'(x))^2\right)^{\frac 3 2}}\right)$$
which is equal to
$$\frac d {dx} L_{y'}=\lambda y''(x)\left(\frac {1}{\left (1+(y'(x))^2\right)^{\frac 3 2}}\right)$$
This gives the Euler-Lagrange equation $$\lambda y''(x)=\left (1+(y'(x))^2\right)^{\frac 3 2}$$
I have no idea how to solve this ODE, and moreover, it doesn't seem like this is what I should be getting.
Did I derive this result correctly? If so, How do I solve it?
note: I know that it is also possible to solve by parameterizing $x=x(t), y(x)=y(x(t))$. I want to do this as well, later, but I would first like to understand the approach I'm taking here.

You have derived the radius of circle correctly. Maybe you did not realize that no need to anything further than seeing how the particular situation constant$~ \lambda $ applies everywhere.
If point $b$ is moving w.r.t. point $a$ on x-axis we have to understand each segment situation in all the three cases with differing radii $\lambda, d $ symbolically given by a single relation in the last line of answer.
The Lagrange multiplier $\lambda$ is nothing but the associated geometrical invariant radius in this case.
If distance $ (a-b) =d $ and arc length $L$ are given then we have three cases
$ L= d$ gives optimal semi-circular area segment
$ L> d$ gives optimal area of major segment
$ L< d$ gives optimal area of minor segment
In the last two cases we need to iterate /numerically and find radius $\lambda$ from:
$$L=\lambda \cdot 2 \sin^{-1} \frac{d}{2\lambda}$$
which relates $\lambda$ with the given constant length quantities $d,l$.