This page lists the Product type which you cannot change, which is "Custom Product" and the Product name is herb product.
You can change the display name to anything you like. If you don't want to call it custom products throughout the system, you can change it to; My Products, Formula Products, Herb Products
The default category will automatically be selected when you create a new custom product. You can change the default category. We have this setting because every product requires a category, so we wanted something to be defaulted, so its easier to add a product to your store if you are unsure of the category. We suggest making the default "Uncategorized" or something similar.