You can create folders and separators, and organize your Bookmarks or Favorites in any way that suits you. In Internet Explorer choose "Organize Favorites" from the Favorites menu. Then choose New Folder, name it whatever you want, drag it to the position you would like it to be, and finally drag the bookmarks into that folder. In other browsers, choose "Bookmarks" from the Window (or Navigator) menu and then "Add folder" from the Item (or File) menu. You can drag any Bookmark, Favorite or any folder into any position you like.
You can change the name of the Bookmark or Favorite too. In most browsers, you can just click on the name of the Favorite or Bookmark and edit the name.