According to Drupal.org - Taxonomy:
Taxonomy is used to classify website content. One common example of taxonomy is the tags used to classify or categorize posts in a blog website; the farmers market website could use an ingredients taxonomy to classify recipes. Individual taxonomy items are known as terms and a set of terms is known as a vocabulary
Technically, taxonomy terms are an entity type and the entity subtypes are the vocabularies. Like other entities, taxonomy terms can have fields attached; for instance, you could set up an image field to contain an icon for each term.
An individual vocabulary can organize its terms in a hierarchy, or it could be flat.
Taxonomy terms are normally attached as reference fields to other content entities to provide categorization of content.
To add a new vocabulary to your Taxonomy list:
Navigate to Structure
-> Taxonomy
-> Add vocabulary
.
-
Navigate to
Structure
->Content types
->Manage fields
->Add field
. -
Pick
Taxonomy term
from the dropdown and provide a label. -
Select the type of item to reference.
Taxonomy reference
. -
Click
Save field settings
. -
Click
Save settings
.
To add new terms to your Vocabulary:
Navigate to Structure
-> Taxonomy
-> List terms
-> Add term
.
Allows new terms to be created right on the content editing form.
To enable the ability to add terms while editing content:
- Navigate to
Structure
->Content types
->Manage fields
. - Click
Edit
for your Term Reference field. - Check
Create referenced entities if they don't already exist
. - Using the dropdown, choose the vocabulary your new terms will be saved to.