That's sort of correct. Without getting into an essay on Caller ID (CLID, the numeric part, or CNAM, the alpha part), and how it can work differently with VoIP vs. POTS, the telco industry maintains a "LIDB" (Line Information Database), containing, among other things, names matched to subscribers' telephone numbers. Most landline, and (as far as I remember) two of the big four mobile carriers, allow their customers to specify the name that they will feed into the LIDB. When you place an outbound call, the telco providing the called party's service queries the LIDB. If your name is in there, they'll send it to their subscriber's phone. If your name is not in there, the called party's carrier can do whatever they want. Typically, they'll send some generic information, based on the geographic location of the calling number, like "Boston MA" or "Kansas". Others send "Unknown caller" or a similar phrase.
Google neither feeds its users names into the LIDB, nor does it "dip into" the LIDB on inbound calls. However, for INbound calls, if you happen to have the caller's number and its corresponding name in your own Google Contacts, then GV will display that name to you. If the caller is a business that Google knows about (via Adwords, or Google Maps or another means), then it will display the business' name. None of this is coming from the LIDB.
Bottom line: no, you cannot change what your called parties see when you call them, however, you can change what YOU see when they call you.