What kind of environment do you see your characters in? Try to see the mood of the story, if the characters are dark then a dark place is where a reader will imagine them in. Here are the steps in order of what I do...
rocitta
An imaginary place where everything is perfect is usually referred to as "Utopia".
Any name that you like is a good name! Your characters are yours - don't depend on other people to tell you how to run your imaginary worlds.
Human name: male - Kaven female - Tabitha Imaginary Name: male - Lacatha female: Anazlia
His name is Bob(:
a name that means imagine is Isabella
It is a figurative place where all comes together.
Niall's imaginary friend's name is Michael.
It is not a real place
Utopia means a perfect society; nothing bad but to cancel out the good. The noun utopia is an imaginary place or a state of mind, a thing.
dystopia
Hell