Yes, Duchies can get any name at creation, though naming it after the region is highly recommended. The Duke of Iato might even eventually hold no Lordtitle at all as well!
Is this intended? 'cause when the system went live, I recall seeing "if you get bugged out for trying to do things like making yourself a duke without a lordship, then you'll get no mercy".
Naming it on the city might be recommended, but I think the standard will become, over time, to change it at least a little. Iato might be an eventual part of the duchy of Iat'r, for example. Dyomoque could be part of the duchy of Dyomokia, Fwuvoghor of Voghoria, etc.
