Named after Carl E. Sagan - American astronomer (1934-1996).
Sagan is an impact crater in the Oxia Palus quadrangle of Mars. Dr. Sagan was a founder of the Planetary Society. Impact craters generally have a rim with ejecta around them, in contrast volcanic craters usually do not have a rim or ejecta deposits. (wikipedia entry)
A crater is a circular depression likely created by an impact event. On Mars large craters are named after deceased scientists, writers and others who have contributed to the lore of Mars. Small creaters (less than 60km) are named after small towns and villages.