Named Word is a term used in early educational assessment. It refers to a word that is named by the instructor and then is to be recognised by the child.
Good Bad Cow Cat ... "Can you see the word that says "Good"?
A related assessment is done by using named pictures that associate a word with a picture.
It has not been easy to find relevant reference online but here are two of the best I have found so far. The first is an extract from an assessment list for the early years of childhood:
Experiences in Language Arts, Jeanne M Machado
Beginnings of Communication
Fig 1- 3 Milestones in Developing Language Behaviour
"Reacts to an increasing number of words. Speaks first word(s) (usually words with one syllable or repeated syllable). Points to named objects or looks toward named word. Makes sounds and noises with whatever is available. Imitates breathing noises, animal noises (like dog's bark or cat's meow), or environmental noises (like "boom"
or train toot). ... etc."
The second specific usage is found in this extract from teaching dyslexic children about commonly used words:
Recognise a named word – Choose five different words, write them out five times and spread them around the table, say “Find me a card which says ‘out’, find me a word that says ‘my’”.