Not so sure it has an official name, it is a 7-bit encoding. It is a variable length encoding, the high bit of a byte is set if another byte follows. Byte order is little-endian.
The .NET Framework uses it, Write7BitEncodedInt() method. Used by the BinaryWriter.WriteString() method, it saves space since most practical strings have less than 128 characters.
So F403 => 03F4 => |0000011|1110100| => |00000001|11110100| => 0x1F4 == 500
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