Hi David! And welcome, glad to have you.
We have generally let people define their own towns if they want. Feel free to make up local geography and put it in a character background. If you accidentally conflict with anything that’s been establish, we can work with you on modifications. That’s unlikely to be necessary though. There also isn’t a defined naming scheme.
As for where to start for ideas, I would recommend picking a culture and reading about it, there are culture packets that we send you. There are also pinterest boards with some visual inspiration for the different cultures: Witchwood Pinterest Boards