As a label, legalism has one thing in common with liberalism. It's a convenient handle to bash anything you don't like. I don't know very many people who would deny the supernatural origin on the Bible. Most of the people I know accept a miracle creation, the validity of the Bible's miracle stories, the virgin birth of Christ, the literal resurrection and ascension of Jesus, the second coming and a literal heaven and hell. Those viewpoints are conservative by any stretch of the imagination.
Legalism is a term used to describe a mindset that places rule keeping at the heart of religion.
It operates on the premise that salvation is earned through human performance. Most of us are experts at recognizing it in others and totally inept when it comes to seeing it in ourselves. I have never met a professed Christian, legalist or otherwise, who would not concede the truth that salvation is by grace. However, many people believe that justification in God's sight is a proportional matter. In their view grace takes up the slack between our poor performance and the requirements of God.