At the outset of the performance, there is absolutely no notice of what's hidden within the two main characters names. But as Shakespeare leads the audience he gradually reveals motives and underlying meanings buried deep within his words. The character of Iago illustrates this perfectly. Most Shakespearian villains have had some cause to become evil or sinister, yet as Othello goes along the motives we expect never come. By plays end we understand that Iago is simply a hateful, antagonist that preys on chaos and manipulation - he was introduced to the audience in this manner and stayed so throughout the play right under our noses. In the same capacity Shakespeare manipulated his audience with the title and names Desdemona and Othello.
As for specific link to their characterization...
- "Othello" may resonate with his reference to "HELL" given his continual progression to religious and moral judgement. Over the course of the play these concepts gradually weigh on his mind more and more, much like the word "HELL" becomes apparent to the audience. The culmination of his underworld affliction comes with this quote: “Whip me, ye devils, / . . . / . . . roast me in sulphur, / Wash me in steep-down gulfs of liquid fire!” (V.ii.284–287)
- "Desdemona" within the play takes a supportive role to Othello. Therefore, it seems fitting that her implicative name "DEMON" takes supporting to role to Othello's "HELL". It also plays into the prevailing mention of monsters. Seeing that as monsters grow and become more ferocious/fearsome they would fittingly take on the demon form.
This was my second time studying Othello, and now I can say without doubt, that as an audience I felt more manipulated by Shakespeare's writing in this play than in any of his other works. The character dynamic, change in setting, and characterization of Iago are all tools Shakespeare used effectively to deceive any preconceptions the audience may have had. Further, in retrospect the hidden meaning within "Othello" and "Desdemona" as simply names is extremely appropriate - and symbolic to the work as a whole.