Why does my iphone 7 show caller name id when they are not in my contacts?

Why does my iphone 7 show caller name id when they are not in my contacts?

The person calling allows their name to display. It depends on the source of the call. Potential options:
1) The person calling allows their name to be displayed so the information is accurate.
2) The person calling is spoofing that information so the displayed information is not accurate.

Like L said newer cellphones have called identification built in

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