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This will be a pretty basic summary and different yards may be slightly different but this should be a good primer:
Generally copper has 3 grades for bare metal, bare bright, #1 and #2. Then depending on where you're at and the scrap yard there's #1-3 grades of insulated wire. There are other grades as well, like spence mentioned.
Bare bright is essentially brand new copper product that ends up as scrap. It has a high purity percentage of copper and yards often sort this into wire and tubing/sheet
#1 has some age/oxidation to it, typically anything that isn't brand new but isn't green or close to it.
#2 is heavily oxidized, often green or thinner that 16 gauge. Depending on state regulations this may include burned copper (don't do it it's not healthy). This also includes plated copper, soldered copper and copper alloys that allow threads to be manufactured into the copper (like pipe fittings).
Insulated wire essentially follows the same rules but adds insulation.
Bare brights and #1 with insulation fall under #1 insulated. Romex would be #1. Note as insulation gets thicker/heavier even #1 copper can drop into #2 insulated grade.
Anything that is #2 copper (oxidized or plated or thinner than 16 gauge) is automatically #2 insulated. As above, heavier insulation can result in a drop to #3.
#3 is largely communication wire, audio, video and other very thin wire or heavily insulated.
Again, very basic understanding, every rule has exceptions and special grades.
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Here to learn more so I can recycle more
My grades are my own opinion and not an official grade from Boardsort
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