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The British Royal Family changed their last name from Saxe-Coburg-Gotha to Windsor in 1917. So Her Majesty's last name is Windsor. Windsor. Some of her family are entitled to use the name Mountbatten Windsor which was authorised by an order in council in 1960.
And then in 1960, The Queen and The Duke of Edinburgh combined their surnames to make Mountbatten-Windsor - their direct descendants can use this name but it isn't binding. The official last name of Prince William is Mountbatten-Windsor. In his military role, he used Wales, which is taken from his father, as his surname. Andrew Hewitt of The Mirror elaborated on the significance behind the royal baby's name.