You can create labels to group your friends or connections. When you apply a label to multiple friends or connections, the label becomes a way to group those people and the list to include only those with certain labels.
To create a label, first view your friends or connections by going to Your Stuff > Connections or Your Stuff > Friends. Under Filter by label, click Add/edit labels, click Create new label, enter the label text, then click Save.
To apply a label you've created to a friend, start by going to Your Stuff > Connections or Your Stuff > Friends. Locate the friend in the list of people you're following, then click the Labels link on their listing. In the box that appears, under Apply label, click the label you want to apply. To remove a label, click the Labels link, then click the label under Remove label.