Categories are used to organize content within a WordPress site. Users who open an article, can look at the category and then find related content that have the same assigned category. The following video discusses the definition of categories within WordPress, shows the steps required in creating categories, and how to best use categories within WordPress.
Categories are created within the POSTS section of the WordPress Administrator. Categories consist of:
Category Name: Name of the category
Slug: The slug is a search engine friendly version of the category name. Its normally only lower-case characters, numbers and hyphens. For example, “slug-99”.
Parent – hierarchy for category; if the category is at the top of the hierarchy, then it would be the parent
Description – this is the description of the category
Adding categories will populate the Categories table. Posts that are created and not assigned to a category are automatically assigned to a category called “uncategorized.”
To read more on WordPress Categories, please see: http://www.inmotionhosting.com/support/website/wordpress/understanding-categories-tags-wordpress
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You can watch this video also at the source.