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If it helps others, this is what I do:
1. Open the sign menu from the train depot menu button.
2. Select the sign button (named Utopia in the pic). Place the sign. Use the options to get what you want - I suggest setting track snapping to NO so you can place sign wherever you want.
3. Once you place the sign, the window closes. Immediately click on the train depot button again, and then click on the sign image with the check mark.
4. Sign will now show nearest named location. SO: Check the location is called exactly what you want on the sign. You can't change it later and deleting it is a pain.