Determine your character's basic physical traits. This includes age, sex, race, weight, hair color, eye color as well as physical deformities and birthmarks. Write these traits down, as well as names that might correspond with them. Names such as Quasimodo (the Hunchback of Notre Dame) might work by playing into a character's appearance, but you could also give characters names that contradict their appearance, such as naming a beautiful female Olga. (Reference 1)
Develop an environment in which your character lives. Include the time period, the country, the region, and the neighborhood. Also include the type of living space, such as an apartment, condominium or house, as well as your character's socioeconomic status. (Reference 1) Names that are out of a place in a character's immediate environment aren't normally advisable, like naming a farm girl Waverly, or calling a socialite Misty. (Reference 5)
Decide how your character interacts with other people in her immediate environment. Perhaps a character named Agnes lives alone and quarrels with everyone she encounters. An upbeat social butterfly, named Gabby, might be a young woman who makes friends everywhere. Additionally, determine what types of people your character spends time with such as troublemakers, churchgoers or activists. (Reference 1)
Imagine what your character's inner world is like and decide whether it mirrors his outer world. A character may be incredibly insecure, but mask this trait with false bravado. Perhaps your character is extremely intelligent, but people see him as stupid because he's not academically oriented. Names can suggest a disparity between a character's exterior world and interior world, such as a girl named Serenity who's a loud troublemaker, or an atheist named Faith. (Reference 1)
Consider how the character that you're naming influences the story's plot or theme. Is your character a catalyst for action, or does she try to keep a low profile, but always end up being dragged into situations beyond her control? Does the character have an epiphany that radically alters the plot? (Reference 1)
Think about the key traits that define your character's personality and lifestyle. Perhaps she's so compassionate she's continuously taken advantage of, or she's so selfish that she wouldn't lend a penny to a dying family member. Your character could be a control freak or an individual who lacks any sense of direction about life. (Reference 1)
Brainstorm and write down any names that potentially fit your character based on the character development notes you wrote. List anything that pops into your head, and don't censor yourself.
Evaluate the names on your list, and eliminate names that don't correspond with your character's age and the time period in which they live. An 18th century romance heroine named Florence might be perfect, but an 18th century heroine named Destinee doesn't work.
Eliminate names that seem extremely bizarre, or too common. A character name like Winner, or Moon Unit might be too much, but a name like Jack or Jane might be too common. Use your book as a reference if you're unsure about a particular name. (Reference 2)
Look up the names in your baby name book, and eliminate names that don't fit your character's personality or motivations. (Reference 2) Although you might like the sound of a name, if what it connotes doesn't match the character you're crafting, move on. The name Sophia might initially sound lovely for a less-than-intelligent, but beautiful girl. Yet the meaning of Sophia is wisdom, so the name might not actually fit, unless she becomes wise through the course of the story. (Reference 4)
Think about possible nicknames for a character, and select a name that has at least one possibility that makes sense with the character that you've developed. (Reference 2) You might name your heroine Elizabeth and call her Liz, Betsy or Beth, depending on her personality or whether it's her mother or best friend who's addressing her. (Reference 3)
Choose the best potential name from your final list and write your story. Once you're finished, or part-way through, you can always go back and rename your character.