To me, some of the best and most memorable band names of all time have been derived from terms used in music, sound production, or communication. Even a name as simple as The Beatles incorporates an intrinsic aspect of music — the beat. Below is a partial list, which is by no means comprehensive. These just happen to be ones I am aware of or particularly like. Enjoy!
Atlanta Rhythm Section
Audioslave
Big Audio Dynamite
Blue Rodeo
Blues Traveler
Collective Soul
Daft Punk
Eurythmics
Land of Talk
Metallica
Miami Sound Machine
Panic at the Disco
Pearl Jam
Radiohead
Roxy Music
Sonic Youth
Soul Asylum
Soundgarden
Stereolab
Stereophonics
Talking Heads
The Amps
The Band
The Beatles
The Deftones
The Moody Blues
The Strokes
Ultravox