Categories help make sense of the hundreds of posts you'll be writing. By assigning the posts into different categories, you can allow readers to browse archives of only that category. To create a category, click the +Add New Category link in the Categories section below the post you're writing. You can select multiple categories for the same posts. To manage your categories, go to Manage > Categories.
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Additionally, through categories, you can manipulate your posts in advanced ways, such as excluding certain categories from your home page, or specifying where certain categories should appear. This is a common technique for magazine-style layouts, where you have different sections on the home page and you want posts from those categories to always appear in those sections.
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You can also give each category its own unique layout and design. For example, if you copy the content of your archive.php file, rename it to category-24.php (or whatever the category ID is), and then modify the file (such as removing the sidebar, or changing the header), the archives for that category will use the category-24.php file rather than archive.php file.
