Categories are tags you can use to tag items with different information. Each category consists of a name and a set of options which are values for that category. You can filter items by searching for a specific category and value. 

Go to Settings


Give the new category a name and click Add new tag 


Write the first option for the new tag and click Add new option


You can always create more categories or add values to already existing tags. To edit a value or category, click the gear item. All categories and values are listed.