My JP friend explained it to me like this:
Almost anything can really be put together to "sound like a name", even if it isn't a real one. Anime is a good example because there are frequently "fake" names that are still recognizable as a name in context.
Context and tone have a lot to do with it, although I guess you could think of it like people's internet handles where you get used to calling a person something like "Pixy" or "Lottes" (lol). Not a name, but sounds like a "name" in context.
Agreeing with
>>42480 though on the point that you are having trouble with the concept because of viewing it through an English speaking perspective. Try learning some moon runes if you're ever bored, OP.