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Do I understand correctly that device naming and group assignment is higher level logic over z-wave itself?

I renamed device and placed it into some zone, but there is no changes on /Data/0 request. So I assume that this is higher level config, which means if I create my own UI (say android tablet UI) then I have to implement that by myself (renaming, logical placement in zones etc.)

Also what kind of server is used... I wanted to place some authentication before the server url so no bad people can access my network outside.

Correct, naming is outside of Z-Way Z-Wave API.

For authentication we will implement a way to do it soon. Also you can use nginx proxy to protect z-way-server from outside.