I literally just come up with a gibberish word and try to spell it in a legible way.
In my comic, The Skyman there are beings known as Gothlox... It just came to me.
Doesn't matter the source... I had a butterfly monster, thought about flying, which lead to sky. Then monster, which lead to terror. So from Sky Terror, it became Skyterra, became Skylartera (had a friend named Skylar), became Skalatera.
Thus, flying butterfly monster Skalatera was born!!!
That's basically how I do it.