Arnach was a pre-Númenórean name for this region, of forgotten meaning. Loss-, 'Flowery' was an Elvish prefix added by the Gondorians, because this valley was famous for the flowers of its upper slopes, and the orchards (and therefore blossoms) of its lower-lying parts. Tolkien comments in this context that loss- is literally 'snow', but mentions the close connection of the words for 'snow' and 'flower' in Sindarin. Perhaps the image this is intended to convey is the drifts of blossoms that would have been seen here during the Spring.
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