Chapter 3 is titled 'Occupancy Classification and Use' and establishes a core categorization system by which other requirements of the code are determined. The chapter establishes 10 primary categories and 23 sub-categories of use, which all areas of all buildings must be designated under. The overarching concept of this classification system is to establish degrees and types of risks that occupants will be subject to, and be the basis for other parts of the code to determine minimum requirements. Most generally, the more occupants in a building at the same time, the longer it takes to get to an exit, and the more flammable/hazardous materials within the building, places that building into a classification that requires greater levels of risk offsetting construction.
As you go through the code chapters, you will see that they will build upon this classification system to establish requirements specific to each chapter. The model shows buildings labeled with the abbreviated, single letter designation of the primary classification(s).