Annie VanderMeer Mitsoda wrote an ArenaNet blog post about the challenges and decisions that went with labeling everything under the sun in Guild Wars 2.
Mitsoda said that the team has established a system for nailing down names. After coming up with the name, the team sends the moniker through a "sanity check" that makes sure it's not too hard to spell or say. The team also tries to weed out the more obscure or overt pop culture references, then passes along the names to the team's "loremasters," who check it against an internal wiki for consistency.
She goes on to share a few anecdotes about the naming process, such as the evolution of Charr names, the difficulty of putting a label on an animal that has no Earth equivalent, and how the creepy rat-dog Murellow got its name. It's an interesting read into a different side of the development process that often goes unnoticed, so check it out!