How do I set up the display of the categories in the library?

You can set up the display of the categories in the academy via Academy settings > Category settings in the LMS. 

For each type of learning item, you can set how you want the categories to be displayed.

There are three options for displaying the learning items, these are: Don’t show categories, Show side categories, and Show group categories.

Selecting "show group categories "will look like this:

Selecting "show side categories "will look like this: