Named Characters
Named characters are things like • or é. Since roughly 2009 the web has been transitioning from ASCII to UTF8 so they're generally legacy now. That usually means just set your editor to UTF8 and type/ paste the actual character instead as that's often more convenient than finding out what the name actually is.
PowerUI also uses the named character format for its localization system.
Enabling HTML5 Named Characters
If you're trying to use one and it doesn't seem to be working, it'll be because PowerUI defaults to using the HTML4 set of named characters to avoid bloat (because they're not really used much anymore anyway and the HTML5 set is much bigger). Fortunately there's just a tick box for it - go here:
Window > PowerUI > Named Characters
Then tick the box to enable the HTML5 set.