I could be wrong, but, in the instance illustrated in your screen shot, my bet would be that 'Normal' is an FLS designation, and that no such string appears in the actual font.
Nope, you are correct. Just read through the manual on that part. I've read very little of the manual since my main use of a font editor is to fix client supplied fonts, not to build them from scratch.
The first field is very important (Family Name). Necessary that it is identical if you're creating a font set with a regular, italic, bold and other styles, so they all appear under the same grouped menu in your applications. If you did something like give your plain font a family name of Font Regular, and the italic version a family name of Font Italic, they will not appear together since they will be considered to belong to different font families. They'll of course appear next to each other simply because of their alphabetical similarity, but otherwise won't group together.
Weight and Width you don't even have to enter anything for if you don't want to. Though if you do fill those in, that automates the Style Name process when you click the Build Style Names button. The instructions for the last button pretty much tells you what to do as to generating names for the font.
Build Names: Press this button to automatically generate the Font Name and Full Name fields. If you are creating a new font we recommend that you fill in the Family Name field, generate or manually fill in the Style Name field and press this button to create the Font and Full names. If necessary you can edit the names later.