Block categories organize the inserter interface into logical sections like Text, Media, and Design. Proper categorization helps users discover blocks efficiently rather than searching through uncategorized lists.
Modern best practice favors placing blocks in existing categories when they fit naturally, rather than creating client-specific categories. Use custom categories only for specialized functionality that doesn’t align with core categories.
Consider functional categorization over project-based grouping. An e-commerce category makes more sense than a client name category, as it groups blocks by purpose and feels native to users.