Correct, you want to keep all your tags in one place - so Ability Component makes sense since it already has support for them. The CharacterTags variable is just a temporary to copy the incoming damage’s tags to before evaluating damage. It’s then checked against the Character’s tags (e.g. the Ability Component) and if anything special needs to happen - it does it there.
You can also download the example and see how things work in more details.