Categories are a great way to group posts together by relevance. Not only are they helpful to your site’s visitors, but they also provide filters that you can use for your own website links and display settings.
One example where categories can act as a “filter” is the UBC CLF theme and its Spotlight Rotation (the transitioning slideshow interface which can be found at UBC.ca). The Spotlight Rotation draws its content directly from a post category and new posts in that category are directly pushed into the slideshow as they replace old ones.
Categories can also have a hierarchy that can go down as many levels as you choose. This makes it even easier to organize all of your content.
To access all of your current categories or create new ones go to the Categories page under Dashboard > Posts > Categories.
Tags – which are somewhat similar to categories – are a great tool for highlighting key concepts in posts. While categories are most used for grouping similar posts in a general sense, tags are generally used for more specific distinctions and can be seen as keywords. Most importantly, tags help define your content. This allows for users to perform more specific searches and find links to related topics.
NOTE: Unlike categories, tags do not have any hierarchical structure.
To access all of your current post tags or create new ones go to the Post Tags page under Dashboard > Posts > Post Tags.