Well, the current world I am working on is covered in ice and snow. Only a very small part of it is inhabitable. The people there don't really see the big picture. Their world is just this valley they live in and it ends once the eternal snow plains start. I like to think people mostly use names that are practical or logical. So my world is simply called The Valley
Nations are non-existant, but there are city states in the valley. Most of my cities have practical names again. A city founded in a large forest: Greenwood.
I certainly believe names mean something to people. Why do we name stuff otherwise? Depending on the world you are creating names could be very practical (like mine), inspired by religion or maybe even a lost empire.