Navidrome works best with a library that is already well-organized, but it can do some things in terms of library management, particularly with the use if plugins.

There are some good tools for organizing your library, such as beets, Picard, etc. I did not have good luck with beets because I find it a bit complex for a CLI tool, and a lot of my library is composed of singles and mixes. It seems to do better with whole albums. I use Strawberry player for local library management, which has tools like Picard built in, and also connects to lots of things like lastfm if you want. You can also add lyrics with a tool like lrcget.

If you have existing playlist files saved, Navidrome will automatically import them. It can also make new playlists, and there are plugins for smart playlists, etc.