How is this way of doing called?
I'm not aware of it having any specific name. You're just using a string literal inside the loop.
Should it be avoided for any technical reason?
With a string literal it probably doesn't matter, because string literals define primitive strings (and are likely reused by the JavaScript engine, as they're immutable). But if you were creating an object every time, that would be unnecessary overhead compared with just creating it once and reusing it.
For instance, if you were doing this:
for (var i = 0; i < 4; i++) {
console.log([1, 2, 3, 4][i]);
}
That code tells the JavaScript engine to create that array each time the loop body runs, which is fast, but not instantaneous. (The JavaScript engine might be able to analyze the code and optimize it if the code were used enough that it seemed worth bothering, but that's a different topic.)