Long ass post incoming.
So, first I'll throw this out there that most names have meaning. Frequently, people feel like names are arbitrary in real life, which leads some authors to have difficulty picking a name (since the possible choice space is practically infinite). Most names are religious or family names that have been in the family for a long time. Whether it's Muhammad, John, or Jesus in Western cultures as first names, with things like Smith as a last name, they have meaning in culture, even if their parent didn't consciously pick it, though they often did. Japanese names are usually written in a particular way to symbolize meanings as well.
So, what does this mean for names in your story? It can go many ways. For cities, I have three types examples from my own story that I've used as conventions.
The elves in my world have named settlements as descriptors of the place that they are in their own tongue, with one name translating to "River's End"
The dwarves name mountains, then everyone who is born near that mountain takes that mountain name as a surname. Their mountain names are relatively arbitrary, but fit their language themes I've laid out in the story.
The demon faction with the MC, who aren't bad guys, have purposefully chosen to name their settlement/country/island in ways that are meant to convey that they are peaceful.
Three different options, all laid out because of cultural norms or conscious choice. This did require that I consider a culture for each race, along with linguistic norms for them, which can sound daunting, but it wasn't actually too bad. For example, the demon language uses a lot of hard consonants and growling noises, frequently end words in an a sound, and takes some inspiration from Latin in addition to that. The dwarves have more slurred sounds like Sh, and are generally more terse. The elves are secretive, old, and in tune with nature.
Naming cities has 2 main choices to consider as an author, and it depends on the type of story you are telling. Option 1: If you want the story's world to feel real, then you should consider coming up with a culture and naming conventions for it. This is the way Tolkien wrote. Option 2: If the story is more ephemeral, and meant to be a pathway along which the reader follows along, then location names should also simply convey what will happen there subtly. If you want the MC to meet the main villain in a city for the first time, take inspiration for the name from existing bad cities. Make it sound similar to something like Sodom or Gomorrah, as an example.
Character names follow similarly. Culture can tell you how to name things, then you just make them sound similar. Elves in my story have Matriarchs, and all the elves who are in that family have the Matriarch's name as their last name. When one ascends to become a matriarch, they give up their own name, and take on the family name as their name. Dwarven names I take inspiration from volcano names from earth for their given names. Demon names are short and made of mishmashes of common syllables in their tongue. They are less independent thinkers, so their names are meant to convey similarity between them (and, in fact, they reproduce by summoning, which is akin to budding, so...).
Similar to cities though, character names should either fit the world itself, or fit the story to the reader. Be wary of using too many arbitrary names. I don't think people often think it is a problem, but personally, I always find it off-putting when names are *super unique* without reason, or seem completely arbitrary, especially if they're going on some important journey. For example, mixing name origins in a single party when the characters are from the same place. Do NOT give one character a German origin name, and another a Russian origin name in a fantasy setting when the characters are from the same town, UNLESS you plan on making it a plot point that one family immigrated at some point.
Names are about cohesion and conveyance. Doing both is fantastic, but in most cases, you need only do one. Doing neither is a red flag. Cohesion of the cultures and languages within the narrative world, or conveyance of meaning to the reader.