One-hot
Creates a separate indicator column for every category.
NominalOrdinal
Maps meaningful ranks to ordered numeric values.
OrderedLabel
Assigns one integer label to each category.
CompactBinary
Converts category indices into compact binary columns.
High cardinalityNominal categories have no natural rank. Ordinal categories have a meaningful order, such as low, medium, and high.
Label encoding can make models treat arbitrary numbers as distances. One-hot encoding avoids that assumption.
Fit category mappings on training data only. Reuse the same mapping for validation and test data.
Binary encoding uses fewer columns than one-hot encoding. It is useful when a feature has many unique values.
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