Using classic Outlook for Windows in business environments
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Based on my research and testing, I am glad to share the insights I have gathered so far regarding your inquiry.
In Outlook, the display name shown in the From and To fields is taken from the Offline Address Book, which is used as the default source when resolving proxy email addresses. From testing results, Outlook consistently uses the display name listed in the Offline Address Book when populating the To field during email composition. This display name format may differ from the standard First Name Last Name format.
For reference, you may review: Force Outlook to use the Global Address List to resolve proxy addresses and custom properties in Ca…
The Offline Address Book is generated from the Global Address List and Address Lists. These are controlled at the tenant configuration level and are not configurable from the user client side.
For additional details, you may also refer to: Address lists in Exchange Online | Microsoft Learn
From the user perspective, there is an optional workaround. A user can create a personal contact with a display name or full name that differs from the Offline Address Book. When sending an email, the user can:
Click To > open the Address Book > select Contacts > choose the intended recipient > send the email.
In this case, the display name shown in the To field on the sender’s Outlook may differ from what is defined in the Offline Address Book.
I hope this provides helpful context and additional insight. If you have any updates after reviewing this information, please feel free to share.
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