I've created this question for us to document guidance around tagging. We have a lot of old tags migrated in from SharePoint Overflow 1.0 that should be sorted through, and need to set the appropriate guidance going forward. This post is intended to help us with both these things.
It's set to community wiki - adding new entries and editing existing ones is encouraged. Please remember to vote!
(This post is an adaptation of a similar one on Cooking SE so thanks to them.)