What is taxonomy terms?
Simply its like a tag option . if we click the tag name , under the tag name all the content types are list .
Its segregate to your website content .
Collection of terms here call it as as vocabulary.
Vocabulary are the configuration entity .
Under Structure - > Taxonomy - >
Inside the list terms page called as content entity .
Then we can create terms , before create a terms we create a new fields using the manage fields option .