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Define how your vocabulary will be presented to administrators and users, and which content types to categorize with it. Tags allows users to create terms when submitting posts by typing a comma separated list. Otherwise terms are chosen from a select list and can only be created by users with the "administer taxonomy" permission.

The name for this vocabulary, e.g., "Tags".
Description of the vocabulary; can be used by modules.
Instructions to present to the user when selecting terms, e.g., "Enter a comma separated list of words".
Content types
Select content types to categorize using this vocabulary.
Terms are created by users when submitting posts by typing a comma separated list.
Allows posts to have more than one term from this vocabulary (always true for tags).
At least one term in this vocabulary must be selected when submitting a post.
Vocabularies are displayed in ascending order by weight.