I organize my presets first by block type, then I name the favourites based on the (real world, not line 6 name) effect name and then what it does, e.g. "Klon - boost", or "DMM - ambient", "Litigator - clean".
I'll usually save my go-to sound for a block as a user default and then I'll only save favourites for sounds that are a significant departure from that. That way things stay cleaner and I don't have a bunch of different favourites for variations on the same sound. I'll generally use the favourite as a starting point and then make small tweaks from there in the preset.
I also tend to not create favourites for blocks that have few parameters (e.g. red comp) or that I find are easy/quick to dial in (e.g. hot springs). I'll just dial those in on the fly as needed for whatever preset I'm building.
