Package categories are required to create a Package. Proceed to the Packages dashboard, click on 1 that is Categories to create one. The Categories are organized in an alphabetical order.
Also, in order to create a new Category, follow step 2 as shown in the screen shot, i.e. click on the + icon
Next if you want to remove one, just click on the trash can icon next to the category not needed as shown in step 3.
To edit an existing Package Category, click on the name and edit it, as shown in step 4.