Products can have several different badges shown for them which are listed here. Prior to showing badges you need to enable them from: Theme Settings -> Product Grid.
Editing badge texts
Badge texts can be edited from theme translations under Product -> Badges.
Editing badge colors
Badge colors can be edited from Theme Settings -> Colors -> Badges
Badge: NEW
This is displayed for products which have the tag "new".
Badge: PRE-ORDER
This is displayed for products that have the tag "preorder".
BADGE: SALE
This is displayed for products that are on sale.