Taxonomy is a Drupal module that allows you to categorize your website content. This helps you to keep the site in order and makes its content easier to find.
Term – terms are used to describe content.
Vocabulary – provides a list of terms in taxonomy.
Taxonomy – The classification of the substance in the hierarchical arrangement.
Tagging – The procedure which associates the term with the substance on the Drupal site.
Taxonomy works in a hierarchical structure, which is what keeps the content of your site structured. The Taxonomy settings can be found in Drupal -> Structure -> Taxonomy. You can create a new Vocabulary by clicking Add vocabulary.
When you create a vocabulary and want to add additional terms, you can do that when posting content to the site. When adding tags, they will show suggestions of the terms you have created earlier.
If you select terms from the Vocabulary, they will be viewed as tags on the page you have posted them to.
To sum up, Drupal Taxonomy offers an easy way to keep track of the content of your site. These are the very basics of the module but you can do much more using it.