According to interviews with show creator Christy Marx, while all of the Holograms' first names were already chosen by Hasbro (the creator of the toy line), she gave them all last names that corresponded to scientists who were at the time working on holographic technology. Similarly, she named villain Eric Raymond after her own brother.
In one scene where people are watching several television screens, you can see a news report of an attack by the Inhumanoids (who were monsters from a show of the same name, InHumanoids, also produced by Sunbow).
After M was ditched as the name of Jem, several other names were tested before the final names were decided upon. Jem was Misty, Jerrica was Morgan, Kimber was Aja, Aja was Jade, Stormer was Roxy and Roxy was Ru.