Report type categories are stored and presented in folders. This will help us find the right report type quickly when creating a new report. Depending on the Salesforce edition you subscribe to, you will get different report type categories.
You cannot create a new report type category, but you can create a custom report type and store it in one of the categories provided; it is always a good practice to store a custom report type in the right category.
Over the years, you may have too many reports types created, but many of them are seldom used or are only used once; as an admin, you can delete these report types or hide them from the user selection when creating a new report; this includes both standard and custom report types.
Here is a comparison between hiding and deleting the report type:
Action | Delete | Hide |
Restore report type | Not possible | Just... |