Each Space, folder, or list (location) should have an identifier that gives you an idea of what type of tasks or information you are managing. This is a functionality that helps to visually identify locations, but it also helps organizing and could eventually help establishing automations or rules in ClickUp.
One example of this is resource planning. If you refer to the following feature request https://clickup.canny.io/feature-requests/p/staffing-and-resources
You will see that under that need (request), resources could be better planned within ClickUp for ongoing or coming projects. But, because not every location is a project, you can't plan resources based on locations that are only identified as 'projects'.
NOTE: A survey is needed before implementing this solution to verify which location types are needed. Probably we should have category and sub-category.