A clipart category can contain multi-level sub-categories.
When you want to place a category into another category, just select its "**Parent Category**":

Display on Clipart page
The Category tree on the left shows the hierarchy of all clipart categories.

Hover on a category to see the action buttons. Click + button on a category to create a sub-category of it.
You can add up to 5 levels of sub-category.

To turn a category into a sub-category of another, just click on it and change its Parent Category

To duplicate a category, just hover on the category to show the action buttons, then click on the Duplicate button.

To re-order sub-categories in a category, click on the parent category. It will shows all sub-categories for you to re-order manually, or automatically sort by alphabet

Display on live store
If you set an artwork to be personalized with a clipart category, then on live store it will list all cliparts of that category immediately:

If you set an artwork to be personalized with a group of categories, you can only select a parent category, then on live store it will show a drop-down list of its sub-categories. Cliparts of a sub-category only shows up after customers select a sub-category:

You can choose how the cliparts in a category display on storefront in Clipart Display Settings.
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