Soil taxonomy provides a standardized system for classifying soils based on measurable properties. It categorizes soils into six levels - order, suborder, great group, subgroup, family, and series. Diagnostic horizons are used to classify soils into the 12 soil orders. The system aims to organize soil knowledge, understand relationships between soils, establish groups for practical uses like predicting behavior and identifying best land uses. It considers factors affecting soil genesis like climate, vegetation, parent material, and relief of the area.