How do you edit the content and location of apps in the App Libtaty?

You can add and remove apps from the App Library, but other than that, you can’t do anything else.

Organize the Home Screen and App Library on your iPhone - Apple Support

It would be nice if you could rename the categories and customize them, but you can’t.

Absolutely. This is the first iteration of the App Library. Everyone should provide CONSTRUCTIVE feedback to Apple via this link and the more who do, the more Apple will listen to people. Simple telling Apple it is hated isn't constructive. People should tell them what they'd change about it if they could.

Use this link --> Feedback - iPhone - Apple

When I first saw the App Library it seemed like a good idea. The sorting makes no sense.

What human created Productivity and Finance folder? I have all my bank apps mixed in with email, calendar, Pages, Numbers, notes, ... Well pretty useless. There are 24 apps in this folder. The folder assignments make little sense.

Will wait for version 2 before I look at it again. Obviously they need to allow for total customization.

You don't. It is NOT user configurable.

You of course can still put apps in folders and name them as you have always had the ability to do.