Tags was a feature added to Finder in Mavericks, and when used properly it’s a great way to trying to keep all your content organized and easy to find. The problem however, is that the tags themselves are not organized. You can tag something with the color red, but what does the color red represent?
Changing the name of the tag helps you remember what’s actually being tagged. Changing the color can emphasize the tag, for example; red is attention grabbing so maybe it would work well as the “Important” tag or deadline tag.