It does. Monster is also a dutch word, with the same meaning as the English monster (horrid creature), but can also be used as synonym for "a sample".
In this case, the name of the village probably comes from the same word as the English "Monastry". Other places have the same etymology, e.g. the city Münster in Germany.
I think the horrid creature meaning and the sample meaning are cognates (both from Latin for 'show', in one case because the sample is made for purposes of showing it to someone, and in the other case because you can't look away, so to speak). (Or because the gods wanted to show you that they were displeased with you, maybe.)
Can I just say how cool it would be to say that I live in a town called Monster?