In urban fantasy style fiction with multiple supernatural characters, is it understandable to the reader if race names of each group are a combination of stereotypical species names (such as 'vampire' or 'fairy') with made-up names or regular names that have been altered somehow? A quick example for the sake of my question could be spelling fairy as 'fayree' or using latin/ancient language terms in the name such as 'necro' being part of the created name for zombies?
I want my story to contain some of the usual creatures of fantasy but I also want to avoid cliches with the trope-y boring names and connotations associated with such. I am worried that creating my own titles alongside normal ones could create too much confusion for the reader.
I want to assume my reader already relates/has some knowledge of my alternate reality similarly to the way the Sookie Stackhouse books are set. Like, in our relatively current time period, with mostly the same history that the reader is familiar with, except to highlight my created alternate history/difference to explain the fantasy elements existence.
Any advice on how to structure narrative to explain any created names/traits etc without info-dumping yet making it easily understandable to the reader that if for instance they read the word 'fayree' without too much background info that they would immediately associate it with the common ideal of fairy?