Term Store is used to configure managed metadata for sites. The managed metadata features in SharePoint Online provide support for the implementation of formal taxonomies through managed terms. By configuring and using managed metadata on content on sites, you can improve the consistency of metadata on your content, and also make it easier for users to discover content on sites.
i. Create and configure a new group
Groups define security boundaries. A group is a set of term sets that all share common security requirements. To create a new term set group, you must be a Term Store Administrator. If you have access to Administration Center,
1. Go to Term store, click on Taxonomy, and include yourself under Term Store Administrators.
2. Go to [Taxonomy Term Store], click on the down arrow next to [Taxonomy] and click on [New Group].
3. Type in the name for [New Group] and press [Enter].
4. Fill in the necessary information for the Properties and click [Save] when finished.
ii. Creating a New Term Set
1. From the Term store, go to Taxonomy Term Store, go to your newly created group and click on the down arrow next to the group then click on [New Term Set]. Type in a name for the term and click Enter.
2. Fill out the content in the Properties box for Owner and Stakeholders.
3. If you would like the users to be able to add terms, keep the policy [Open].
4. Click [Save] when finished.
iii. Create a New Term
1. From the Term Store, go to Taxonomy Term Store, Go to the Term set you would like to create your term under. Click on the down-arrow and click on [Create Term].
2. Type in a name for the term and click [Enter].