The Delivery section where I work now has eight Agile Squads, so without names it can get complicated. Every squad can't be known as the ".Net team".
We were the first squad to pick a new name, and this really all began when I was looking at a team board in VSTS and I couldn't identify the owners at a glance. From this day I decided I wanted to get the team to personalise their avatars. The goals were simple. We needed something everyone should recognise, and a consistency through the Squad. Once superheroes were chosen, then the whole squad got behind the Squad name of Marvellous.
This alone doesn't bring cohesion and happiness, but a willingness to come together and identify as a single squad is a start. There is also some personal identity, there can only be one Spiderman. I am Thor, hammer and all!