Where exactly do you want to see that "title"?
You can put the field at the top of your layout, just put the name field there. You can even rename the window to have this name.
What you can't do, is dynamically rename a layout as shown in the drop down list of layouts listed in the the status tool bar.
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While in layout mode, click the text tool and click where in the Blue Header layout part you want to see that name. Then pull down the Insert menu and select the Merge Field Option. Insert both the first and last names as merge fields. In browse mode, these will show the name of the current record.
I am assuming that you are are in form view to see one individual's record at a time.
BTW, you can also just put the fields there without making them merge fields. You can put multiple copies of the same field on your layout if you have the need.
Using merge fields allows you to "flow" the text from the two fields together--even mix in some layout text such as a comma between last and first names. Merge fields are also read-only which can be useful for this context.