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Click on the Dashboard button in the Toolbar and click Categories.
The Dashboard will appear.
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Under Posts, click Categories.
The Categories panel will appear.
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Click on the Category you want to edit.
The Category context menu will appear.
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Click Edit.
The Edit panel will appear.
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Edit the Category as desired.
You may edit the Category's Name, Alias, Parent, and Description. For more on those fields, see Adding a new Category.
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Press Save.