Hello! Yes, the Dwarven kingdom's language is heavily inspired by Italian, so you can deduce the meaning of some names if you know some Italian! (I don't, but I used some online translating tool to help me lol.) Some other words are a little more distorted so their meaning are probably less obvious. But you are correct about Lagodoro and toccarella! Those were the intended meanings. Lagodoro is called that way because of the lights of the city reflecting in the lake. And the toccarella is called that way because the dance involves a lot of touching lol.
Thank you for your comment!