Follow these steps to determine how senders' names appear on your lock screen when you receive a message in iOS 7.
- From your home screen, tap Settings | Mail, Contacts, Calendars
- Under Contacts, tap Short Name
- Tap the type of name listing you prefer (Figure A)
iOS 7 running on a Verizon-branded iPhone 5.
You can also completely turn off the Short Name feature to have the full name of the sender. To do that, simply tap the Short Name on/off switch until it's in the off position. The system will also continue to use Nicknames (when a nickname has been assigned to a contact). You can turn that off in the same screen by tapping the Prefer Nicknames on/off switch until it's in the off position.
This setting doesn't just apply to the lock screen -- it's global. So, if you'd prefer using short names for other features, it's either all or none.
That's it! You've officially rid your iOS 7 device of a new, annoying feature to help you always know who, exactly, is sending you a message.