Skill Categories are used to distinguish skills from one Area or Line from another. To set up Skill Categories go to the Skills Module > Skill Categories > Add new.
You can choose a Code that matches the Area or Line you wish to assign the skill to. For example, if you have an 'Area' designated 'Facilities', you can assign 'Facilities' as the 'Code' and the 'Name' for your 'Category'. Some other examples of Categories can be seen in the image below.
Once you have set up your Categories, you can add Skills and assign them to each category. This makes it easier to filter skills.