When it comes to characters, whether they are Player Characters or Non-Player Characters, much can hang on the name. Some people choose simple names. They are easy to remember and do not have to put much forth towards the actual Character themself. Other times, a name is chosen to really represent the personality behind the character. I enjoy coming up with a descriptive, yet plausible name for most of the characters I build.
Simple, generic names can be used anywhere, and do not necessarily reflect the nature of the character. It does mean that you can quickly get into the game without having to get into Character. Game setting is also less important. Bob the Mage works as well as Bob the Pilot or Bob the Detective. This is especially true for NPCs, as they often don’t even get names of their own. “Thug Number 2” may be good enough. In one fantasy game, I had great fun with a barbarian called Steve the Merciless.
For a more unique character identity, part of the name can come from the setting, or genre of the game the character lives in. A science-fiction or fantasy game has all kinds of strange name opportunities, while a gritty film-noir style game has its own flavors. If your game will have a particular flavor, you can incorporate that into the name as well. A humourous superhero game would have very different names from a dark murder mystery.
Personality is the biggest influence for me when choosing a name for a Character. How would this person behave? What special quirks can be mentioned? As an example, a contemporary fantasy game had a character who was a magic user. Their personality straddled the dark and the light sides. Her name ended up as Angela Gothchik, to imply both sides of her personality. An over-the-top macho commando was fun to choose a name for. Each name I came up with tried to out do the next. Two of my favorite names were Jake Bravo and Lance Manly, but the final name that we went with was Butch Longcock.
So take a moment to think of the setting of the game, the tone or flavor of the game, and the personality of the Character you are developing. Sometimes a name will present itself, but you can still just go with a simple, common name in a pinch.