KnowledgeOwl has always supported creating new tags while editing an article.
In the Tag Library, you've always been able to edit and delete tags, but there wasn't an option to create tags there...
We've been working on some additional functionality for the Tag Library, and while we were working on that, we decided to bring Tag Library up onto equal footing with the other libraries. If you are an Editor or Writer (or a custom role with the Add new tags permission), you will now see a Create link in the Tag Library.
This process also allows you to mark the tag as hidden from readers from the moment it's created.
Check out the new Create link for yourself, or read more about.