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Custom domain
Give the server a name so friends type valheim.your-domain.com instead of a raw IP. The name survives an IP change: update one DNS record and every join prompt, copy chip and Discord post follows.
The DOMAIN chip on the Network card of the Dashboard opens the wizard, and so does Custom domain in the command palette.
A domain you own, from any registrar, or a free dynamic DNS name from something like DuckDNS or No-IP.
Nothing is bought or installed here. The wizard only teaches your DNS to point at this server, and then shows the name in place of the address.
Valheim resolves a name, but it has no SRV record support, so the port always travels with it. Friends join with valheim.your-domain.com:2456, not with the bare name.
Four steps.
Welcome says what it is for and what you need. If a domain is already set it shows it and offers a Remove button.

Name the Waystone takes the name. It is normalised as you type: a scheme, a path, a port or a trailing dot are stripped, then it is checked for shape. Letters, digits and hyphens, with at least one dot. The status line reads "type the name · letters, digits and hyphens, with at least one dot", then either "ᛉ a well-formed name · valheim.your-domain.com" or "ᚦ not a valid hostname: it needs a dot, no spaces and no ports, like valheim.example.com".

Point the name at this server gives the instructions for both routes. For a domain you own, add an A record pointing at the public IP it shows you. For a dynamic IP, use DuckDNS, No-IP or your router's own dynamic DNS.

There is a Cloudflare note worth reading: set the cloud to DNS only, the grey one. A proxied record answers with Cloudflare's address, not yours, and Valheim traffic is UDP, which the proxy does not carry.
Prove the Waystone does a live DNS lookup and compares what comes back against this server's public address.

Three outcomes:
"ᛉ the name answers with this server's IP, perfect" means it is done.
"ᚦ the name resolves, but not to this server's public IP: a stale record, a proxy (orange cloud?), or propagation still in flight" means the record exists but points somewhere else. Usually propagation, or a proxy.
"ᚦ the name does not resolve yet · give DNS a few minutes, then Check again" means nothing is there yet.
The summary underneath shows the name, what it resolves to, this server's address, and the exact string your friends type.
Raise the Waystone saves it. You can save it even if the check has not gone green yet, because DNS takes its time.
The Network card on the Dashboard, above the raw address.
Copy join info and Copy join address.
The Discord status post, when the join address field is turned on.
The raw IP is still there underneath, so nothing breaks while DNS propagates.
Open the wizard again and press Remove on the first step. Everything goes back to the raw address.
Do I still need port forwarding? Yes. A name is only a name. It resolves to your address, and the UDP ports still have to reach the machine. See Privacy and network.
My IP changes. Does the name keep working? Only if something updates the DNS record when the IP changes. That is what dynamic DNS services are for. A static A record on a changing IP goes stale.
Can I use a subdomain of a domain I already use for a website? Yes, that is the normal way. Add an A record for valheim under your existing domain.
Does the check tell Valheim anything? No. It is a DNS lookup and a comparison with your public address. Nothing is registered anywhere.
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