You can assign a category, e.g. 'news', or 'sports', to a GNML format. Such format will then be available only for the article elements that are assigned to the specified category, and won't appear in the list of available formats when you attempt to change the format of other article elements.
The setting is optional.
The purpose of this feature is better organizing of text formatting. Your news text may require different formatting than your sport texts.
By default, to new formats you create no category is assigned. This makes them available in any article element, independently of its category assignment.
See also
And also
Formats and article element types
Formats and the range of frame heights