This is not transliteration, and I would not use the word spelling to describe this. Do you just want to tell people how it works, or are you trying to do some kind of translation?
Here is a general explanation: Chinese writing uses characters, instead of letters, to write names. People will tell you how to write their names by giving other common compounds that use the same characters. For example Lin as in forest ...
You can't just use a single verb to get this across, you need to use a phrase, such as "tell ... how to", "explain how to", "describe ... by", etc.
later note
This is also the way that the pronunciation of a particular character is described. An example of this is in the English translation of the novel Rose, Rose I love you, by Wang Chen-ho:
While introducing Dr. Yun as the next speaker, he wrote the surname on
the blackboard, saying that contrary to what anyone might think, it
was not pronounced hui, as in a dirty face, or hun, as in the word for
low-down bastard, but yun, as in pregnant, with child. The
congregation laughed at this little joke.