A guide to making your EB look better

[Ibn-Khaldun]

Yes, if you set it to TRUE then you can change settlement names.
Just open settlement information and click on the settlement name and that's all.
But you shouldn't change the names of settlements because this might screw up your game 'cause EB script uses those names as well.

Edit: Cute Wolf - It's possible with RTW engine as well if you enter EDIT_SETTLEMENT_NAMES:FALSE line to prefrences text file.