The Dihedral group makes sense, "Di" means two, and "hedral" means.. shape I think (I've just realised how much of what I think words mean are guesses based on experience) like a "polygon" is a 2d shape, a "polyhedron" I've always thought is just "any shape" (example 3 dimensions). So "Dihedral" means 2 dimensions, which it is. (Octagon and cube have different ... reflection+rotation groups (I hope))
The symmetric group has nothing to do with symmetries of shapes, it instead is the group of all bijections from one set to another. I suppose this means symmetry as in "abc->acb" has the "symmetric" version "$abc\to bac$".
Now the alternating group... I have no idea.
Now I discovered these in "Algebra" and "Abstract Algebra" but I've peeked at the contents page of the Combinatorics book I am reading and the symmetric is discussed there, this makes a lot of sense really, combinatorics seems to be the study of finite functions and seems to be easier than functions on the reals and stuff (which felt odd as I was sketching $x^3$ before I was considering "discreet" functions, but if anything they're easier)
So I guess that they were named because Combinatorics got there first. How? What (general case) question was being faced that lead to the solution being called "The symmetric group" (or even set, I doubt combinatorics would care that it is a group).
Sometimes how and why are similar, like turning points, "how did we decide to call $\frac{dy}{dx}=0$ a turning point" and "why" are identical. However there may be many "whys" with these groups as they apply in many areas, there can be only one how. Where the term first cropped up would be a good starting point, but I've yet to find anything.
I'll answer this myself if my searching yields anything.