If you use Unix today, you can enjoy relatively long file names on more or less any filesystem that you care to name. But it wasn't always this way. Research V7 had 14-byte filenames, and the System III/System V lineage continued this restriction until it merged with BSD Unix, which had significantly increased this limit as part of moving to a new filesystem (initially called the 'Fast File System', for good reasons). You might wonder where this unusual number came from, and for that matter, what the file name limit was on very early Unixes (it was 8 bytes, which surprised me; I vaguely assumed that it had been 14 from the start).

I've mentioned before that the early versions of Unix had a quite simple format for directory entries. In V7, we can find the directory structure specified in sys/dir.h (dir(5) helpfully directs you to sys/dir.h), which is so short that I will quote it in full:

#ifndef	DIRSIZ
#define	DIRSIZ	14
#endif
struct	direct
{
    ino_t    d_ino;
    char     d_name[DIRSIZ];
};

To fill in the last blank, ino_t was a 16-bit (two byte) unsigned integer (and field alignment on PDP-11s meant that this structure required no padding), for a total of 16 bytes. This directory structure goes back to V4 Unix. In V3 Unix and before, directory entries were only ten bytes long, with 8 byte file names.

(Unix V4 (the Fourth Edition) was when the kernel was rewritten in C, so that may have been considered a good time to do this change. I do have to wonder how they handled the move from the old directory format to the new one, since Unix at this time didn't have multiple filesystem types inside the kernel; you just had the filesystem, plus all of your user tools knew the directory structure.)

One benefit of the change in filename size is that 16-byte directory entries fit evenly in 512-byte disk blocks (or other powers-of-two buffer sizes). You never have a directory entry that spans two disk blocks, so you can deal with directories a block at a time. Ten byte directory entries don't have this property; eight-byte ones would, but then that would leave space for only six character file names, and presumably that was considered too small even in Unix V1.

PS: That inode numbers in V7 (and earlier) were 16-bit unsigned integers does mean what you think it means; there could only be at most 65,536 inodes in a single classical V7 filesystem. If you needed more files, you had better make more filesystems. Early Unix had a lot of low limits like that, some of them quite hard-coded.