I absolutely love and loathe naming characters. Think about all the time parents spending picking, arguing, voting, and vetoing names for their kids! It is not any different for writers. A name can help or hurt a manuscript.
The first part is trying to find a name that is familiar, so readers can relate. Yet, the name must also be unique to prevent readers from finding it “boring.”
The second part is matching the name to the characters’ lifestyle, age, and how readers might perceive the name. It’s like the devils on your shoulder, GOOD and BAD.
GOOD: Name her Alice, everyone loves an Alice.
BAD: Alice sounds like she would be my grandma.
GOOD: But your Grandma Alice is the best.
BAD: Yes, but she is still my grandma. I don’t want to date my grandma.
Although part one and two look similar, they are different in their own right. You would not give a Greenlandic name to a Oklahoma man who has no family connections with Greenland. Another example could be Rose. Rose might be perceived one way by a large group of readers, which might hurt or help make your story. If the reader doesn’t believe that Rose is a 10-year-old skateboarding champion then you lose the connection with the reader.
I do a detailed amount of research on the names I use, making sure the origin, etc. would be a good match for my characters. My favorite tool to use for character names is Baby Name Origins.