A Sender Profile standardises the information used for email sends. This is generally made up of a From Name, a From Email Address and a few other important items of information required to remain spam compliant.
Keep in mind that the From Name is seen by those that you email from our platform - so it should be nicely formatted and appropriately configured to display either your own name, or a company name if sending company emails.
For example, if your From Email Address is going to be a personal one (like firstname.lastname@example.org), then your From Name should probably be set to 'Caroline Custard'. However, if sending from a more generic or role-based email address, such as email@example.com, then you might like to use a company name as the From Name instead, such as 'XYZ Donuts'.