Give Lightning Web Component a Prettier Name

Use the masterLabel tag in the configuration XML file.

<?xml version="1.0" encoding="UTF-8"?>
<LightningComponentBundle xmlns="http://soap.sforce.com/2006/04/metadata" fqn="firstComponent">
  <apiVersion>45.0</apiVersion>
  <isExposed>true</isExposed>
  <targets>
    <target>lightning__AppPage</target>
    <target>lightning__RecordPage</target>
    <target>lightning__HomePage</target>
  </targets>
    <masterLabel>First Component</masterLabel>
  <targetConfigs>
    <targetConfig targets="lightning__RecordPage,lightning__AppPage,lightning__HomePage">
      <property name="label" type="String" default="WIPDeveloper.com"></property>
    </targetConfig>
  </targetConfigs>
</LightningComponentBundle>

Results in the following in setup.

Ref: https://fun-inspiration-5789-dev-ed.lightning.force.com/docs/component-library/documentation/lwc/lwc.reference_configuration_tags

Use the master label tag in meta XML like below

<?xml version="1.0" encoding="UTF-8"?>
 <LightningComponentBundle xmlns="http://soap.sforce.com/2006/04/metadata" fqn="parentCmp">
 <apiVersion>46.0</apiVersion>
 <isExposed>true</isExposed>
 <masterLabel> Test Component </masterLabel>
 <targets>
    <target>lightning__HomePage</target>
 </targets>
</LightningComponentBundle>