No, in the West it is not normal to group random letters to form unique names. New parents in the West most often rely on traditional names they like, family names (rich uncle), or Biblical names. Unlike in China, a son might be given the same name as his father, with the appellation "junior", or other people in the family. My own son was named for my father.

It's not a silly question. Parents generally choose names for their kids that sound good in combination with their surname. They also often name their kids after a relative. It's possible to invent a completely new name, but it's not common. It's not common for English speakers to choose names with meanings like in China. To us names are just sounds! Ignore lists on the internet that list English names and their supposed meanings: those meanings are actually etymologies, and English-speaking parents don't care about those 'meanings' when naming their children. I should also mention that it's very common for authors of fiction to invent completely new names for their characters. Don't assume that just because a character's name is in a book written by an English speaker that it must be an English name.