I use different systems for different books. In Xenonomicon, I named each episode after the novel which was being parodied. For example, my sixth epsiode is titled Abby's Hope.
In Alien Fiction, I used a more numerical system of Chapter #: Episode Title. For example, my third episode is Chapter 3: The Axe. The reason I did this is that not all of the episodes are a part of the narrative. Some episodes explain the rules for the Alien Ficiton roleplaying game. Other chapters are composed of the text for the Creative Commons licenses under which the series is released. A reader who is not interested in those things may skip easily from Chapter 4 of the story (which is the 4th episode) past the game introduction (which ks the 5th episode) to Chapter 5 (which is the 6th episode).
In the spin-off book, Alien Fiction: The Queen in Yellow, the full titles were getting too long, so I just went with text titles like The Wicked Witch of Western Camelot. The fuller version of the episode with chapter numbers is inside the text block.
In the book Soulless Saint, I wrote used a strategy almost identical to what I did in The Queen in Yellow. The only difference is that in Soulless Saint, I added acts because the story is more traditionally structured.
As for how my readers like it, it isn't an issue. If you don't have readers, you don't have reader problems. (taps the side of head like a meme lord)