they'd only have one less letter rather than the number two. Reference to Dellissa. The number two in roman numerals can look like two lowercase Ls and Dellissa is normally spelled as Delissa.

they were as pale as a ghost! Reference to Dellissa. She is a silver perlino dun which is a very very light color.

It's Axian, I found, is quite the hound Reference to Axe who is a Shiba Inu – a breed of dog.

BUT the name is atrocious, I must say! ; It still makes up only three letters. Reference to Axe. The name is three letters long and the word ‘axe’ could be considered horrific or atrocious.

Therefore I must guess that your riddle is referring to Dellissa and her Shiba Inu Axian, Axe.

Have I correctly interpreted this riddle?