This widget is useful to show the tags, categories, locations, features or labels that you entered in the sidebars. There are some options which we are going to explain there:
Taxonomy: in this field you can select which taxonomy type you want to show. At this time the available options are tags, categories, locations, features and labels.
Display as Dropdown: if you set yes instead of showing categories as list visitors see a dropdown input.
Display Count: if you set yes you will see the listing count of each category next to the name.
Hierarchical: show the categories in the hierarchy structure(parent and child) which you entered.