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Iterations are sorted by descending by start date. The reason is so that as more and more iterations are created over time, the most relevant ones are at the top of the list and easy to find. They cannot currently be sorted in any other way in the Iterations tab, though it would be possible to create a system configuration option that changes the sort order for iterations in that tab.
From the iteration list in the Issues tab, iterations can be sorted by name.
OK, that is also ok for me. I have just not set the start dates yet, because I don't know them before the preceding iterations are finished. But over time, my list will sort itself :-)