Once you've decided how many
subdomains you'd like to create and what they correspond to,
you should choose good names for them. Rather than unilaterally
deciding on your subdomains' names, it's considered
polite to involve your future subdomain administrators and their
constituencies in the decision. In fact, you can leave the decision
entirely to them, if you like.
This can lead to problems, though. It's nice to use a
relatively consistent naming scheme across your subdomains. It makes
it easier for users in one subdomain, or outside your domain
entirely, to guess or remember your subdomain names, and to figure
out in which domain a particular host or user lives.
Leaving the decision to the locals can result in naming chaos. Some
will want to use geographical names, others will insist on
organizational names. Some will want to abbreviate, others will want
to use full names.