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Al- is a common abbreviation for Adal-/Athel-, occurring alongside the longer versions, and in reference to the same people. E.g. Alfred the Great's proper name was actually Athelfred. Muot is the High German form of the second element. Frankish, Frisian, Old English share the mód form (with long o), from which we get English "mood". Note that a common secondary meaning in the West Germanic languages is "courage. pride", indicated also in the derivative modig "proud, brave", modern German mutig "brave", which explains its popularity as a theme. The moody sense of modern English comes from contact with Norse móðr, which shares with Gothic mōþs the sense of "anger, brooding".

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The relation to mund is a red herring. Yes, we might expect mód from an earlier form ending -nd, but it's not. That would indicate an earlier *mand, instead of mund. Instead of sharing a common origin with mind and Latin mens, mentis, mód is actually related to Greek Mousa (Muse), Latin mos, moris "mood, habit, behaviour" (from which we get moral), and Baltic *matō "feel".