Blogroll desperately seeking Subcategories

Hello
I have searched far and wide and need and cannot find an answer or plug in or directions that will give me the capability to create a sub category on my Blogroll and even subs of the subcategories.

I know I’ve seen this done at some point but can’t find my way to the wonderful world of Blogroll Subcategories or Parents.

Please throw a newby a clue.

Thank you

Peace and be well

Bob G