Photos app allows you to create folders to group your albums. You can also create folders inside other folders. You can only create folders in the 'Albums' pane of Photos app, and not in any other pane. To group albums in your folders, Click "Albums" located in the toolbar. Choose "File" and then select "New Folder" option. Type a name for the folder and drag your albums into the folder. This way you can group albums in folders.
If you want to remove an item from a folder, Control-click the photo and then choose "Move Album Out Of (folder name)" option. you can not move shared albums into a folder.
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