I have made a long list of names I like and I choose names from it that fit my characters, but sometimes I start a story, or add a character in the middle, and a correct name just comes along with the character. I also have a list of the names I've used and seldom repeat one. I like to use unusual names if they fit. I often reject a name if it reminds me of someone I've known.
I have used the names of people I have known many times. They would have done everything in character with what I have written about them so I would not be demeaning them. Some may even have done the things I have written about with me.
Generally I would not use names of people I was currently involved with though.
I do not think very hard about character's names, so they all are something like Dave, Doug, Jane or Liz. I also tend to opt for shorter names and easy to spell names!
Sometimes I think about it, sometimes not. I don't believe most readers take the time to discover what a character's name means.
I try to use common names unless I'm playing with a supernatural character. I might go more exotic if the character is a vampire or a werewolf.
One of my writing pet peeves is when a bunch of characters share the same first letter of their first name. If you have a Roger, Robert, and Richard at the three main characters in your story, there's no way I'll keep them straight in my head as I read.
Bridges of Madison County did this to me. I was constantly trying to remember which was the husband and which was the lover.
The names are very important to me and I think long and hard about it before I start writing. I always try to come up with something a little different or something that may convey their personality a little. For example, I chose Adelaide for a more complex character and Christine for an airhead character. D'arcy for an artistic character and Olymipa for a mysterious character. You can say a lot about your characters just with the name. It's especially important in short stories.
Bugs, Sarge, Doreen, Wilbur, and Petey are the character names from a story I particularly enjoyed writing. Doreen was the Waffle House waitress.
An excerpt...
Having already shot his load, the sergeant found himself impatiently hoping that Bugs would hurry and finish so they could leave. He kept eyeing them from his sitting position, annoyed the younger Bugs hadn’t shown any signs of slowing down.
Five minutes later, Sarge was wondering if Bugs endless pounding of Doreen from the rear would ever end. Just then he heard the tone of Bugs’s grunts change. Sarge turned toward them.
Bugs suddenly went tight, his muscles tensed. “Ooh! Oh! Oh, fuck!”
“Give it to me Bugs!” Doreen realized that Bugs was cumming. “Come to mama!”
Finally, Bugs had shot his load. He exploded into Doreen’s soaked twat and slowed his pace down until he stopped. Doreen collapsed on her face. She lay prostate on the bed. Her plump pussy lips creamy and splayed apart.
“Oh my god!” she forced out while catching her breath. “I haven’t been fucked like that in years.”
Bugs dropped to bed next to her. “Damn, I need another beer and could use a few donuts to get my strength back.”
“Goddamn, Bugs,” bellowed the sergeant, “you just barely got through fuckin’ and you want donuts?”
“Yeah, I sure could use a box.” Bugs wiped the sweat off his face. “You wanna go over to Burton’s Corner and buy some Krispy Kreme’s from the cheerleaders?”
I try to match the names of the characters to the story. I think it makes for a much better and sexy read.