Well, the dragon in The Neverending Story is named Falkor. Falkor's name is important because it helps to create the whole character. When you hear the name Falkor, you immediately think of this magnificent, friendly dragon. His name is part of what makes him so memorable. In the story, he is a major part of Atreyu's journey. His name is used in the interactions between the characters, and it's a way for the author to give the dragon a distinct personality. The name Falkor has become iconic for fans of the story, representing the magic and wonder of Fantasia that the dragon embodies.
The author, Michael Ende, likely created the name Falkor through his own creative process. Maybe he just came up with a name that he thought sounded magical and fitting for a dragon. It could have been inspired by his love for certain sounds or words that had a fantastical feel to them.