Crafttweaker renaming scripts are overriden by liteloader
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Sure, you can rename items via a zenscript in crafttweaker. You place a script you create (scriptname.zs) in the scripts folder in minecraft.
Examples here- http://crafttweaker.readthedocs.io/en/latest/#Vanilla/Items/Renaming/#renaming
You can change the display name or localization name via crafttweaker. It works fine without liteloader installed, with liteloader installed nothing happens.
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That's very weird. LiteLoader doesn't really interact with the item/entity/world parts of the game because that's not what it's designed to do, so it's unlikely that it's actually inhibiting the renaming process itself. However it could be that it changes something about the environment that is confusing CraftTweaker or preventing it from parsing your "renaming script" properly.
Do you see any messages in the log which might indicate an error? Also can you check whether it happens if LiteLoader is loaded from the mods folder instead of launched via a launcher profile.
I'm not at home until around christmas now so I can't look into it directly at the moment. When I'm back I will try and get a forge environment set up to test it and find out what's going on.
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A quick grep of the code shows that it seems to use some kind of annotation-based homebrew script parser which looks quite elegant. Out of interest could you find out if the script parsing is broken when using SpongeForge as well, since Sponge also uses Mixin. If SpongeForge breaks the parsing as well then it's more likely to be Mixin which is confusing things rather than LiteLoader itself.