There are two main ways that chemical names are formed. The older method is called "radicofunctional" and names a radical + a functional group. Alcohol is a functional group (the -OH moiety), and isopropyl is the name of the isopropyl radical. So it is written
radical +
function, isopropyl alcohol.
The newer method which is recommended by chemical societies is the "substitutive" method. This method is more general and can describe many chemicals that have no precise name under the radicofunctional system. The name consists of a base molecule (usually an alkane) and then is decorated with affixes according to the positions at which H atoms are substituted by other residues. There is a long list of rules about how exactly the substitutions are recorded, but in principle it provides a single, unambiguous name for any compound.
The base molecule is propane, and it has one of its H atoms substituted by OH at the 2 position. So it is named Propan-2-ol. The rules fill an entire book, but you can get the gist of it by browsing
http://www.acdlabs.com/iupac/nomenclature/"isopropanol" is completely nonstandard and fails to follow either set of rules.