Drag and drop any Finder item into the Hue Dada icon to colorize it according to its tag. Any tag change will adjust the color of the previously dropped item, without further intervention. The application updates the icon based on the original preview of the item while a colored tag remains linked.
If you already use the Finder tags, you will be delighted to see them more easily now, or even to be able to identify them where they did not appear without Hue Dada (e.g., in the Dock stacks, in item lists in the menus). If you are not using the Finder tags, this is the opportunity to discover their features.