Acually he's also named after a dog "in-universe":
SALLAH: Please... What does it always mean, this... this "Junior?"
HENRY: That's his name. Henry Jones, Junior.
INDY: I like Indiana.
HENRY: We named the dog Indiana.
BRODY: May we go home now, please?
SALLAH (to Indy): The dog!? (laughs) You are named after the dog...
INDY (embarrassed): I've got a lot of fond memories of that dog.
(https://www.dailyscript.com/scripts/Indiana%20Jones%20And%20...)
Acually he's also named after a dog "in-universe":
SALLAH: Please... What does it always mean, this... this "Junior?"
HENRY: That's his name. Henry Jones, Junior.
INDY: I like Indiana.
HENRY: We named the dog Indiana.
BRODY: May we go home now, please?
SALLAH (to Indy): The dog!? (laughs) You are named after the dog...
INDY (embarrassed): I've got a lot of fond memories of that dog.
(https://www.dailyscript.com/scripts/Indiana%20Jones%20And%20...)