Words in a vocabulary are always organised in categories.
A top categories usually contain subcategories. You can choose to let a top category contain words directly, without intermediate subcategories. See Editing items.
In addition to having a name and an image, a category can be given a color. This color will be used by all contained subcategories, unless they have their own color defined. A top category without a colour will use the colour of its vocabulary. A subcategory without a colour will use the colour of its top category.
See Editing items.
An administrator can, while editing a vocabulary, drag categories from one vocabulary to another. They will be copied to the other vocabulary. See Dragging.