To create good made - up names for a story, you can use alliteration. For example, 'Peter the Pious' or 'Luna the Lovely'. It makes the name more memorable. Another approach is to mash up two real words. Let's say'magic' and 'flare', you can get 'Magiflare'. You can also look at historical or mythological names and give them a twist. For example, take the name 'Athena' and change it to 'Athrenia'. This way, it has a connection to the original but is also unique and made - up for your story.
You can start by combining different sounds that you like. For example, take a soft's' sound and combine it with a strong 'k' sound and then add some vowels to make something like 'Skylara'. Another way is to use words from other languages and modify them. Say, the Italian word 'bella' which means beautiful, you can change it to 'Bellara' for a more made - up feel. Also, think about the mood of your story. If it's a spooky story, names like 'Shadeon' or 'Morbis' might work well.