Location aliases can be set using the little 'AKA' label under the location name. You can set as many aliases as you want for a location, but you should use aliases that relate to the name of the location, not to describe it. If you want to describe it, use tags.
Aliases are used as a shortcut to referencing locations in console commands. Instead of having to reference the full, canonical name of a place, you can just use an alias. Plus, this is how we tend to reference places naturally, and makes more sense.