Microsoft defines some default ones, but you can modify these and even create your own. To see the code groups defined on your system, run 'caspol -lg' from the command-line. On my system it looks like this:

Level = Machine

Code Groups:

1. All code: Nothing
1.1. Zone - MyComputer: FullTrust
1.1.1. Honor SkipVerification requests: SkipVerification
1.2. Zone - Intranet: LocalIntranet
1.3. Zone - Internet: Internet
1.4. Zone - Untrusted: Nothing
1.5. Zone - Trusted: Internet
1.6. StrongName -
0024000004800000940000000602000000240000525341310004000003
000000CFCB3291AA715FE99D40D49040336F9056D7886FED46775BC7BB5430BA4444FEF8348EBD06
F962F39776AE4DC3B7B04A7FE6F49F25F740423EBF2C0B89698D8D08AC48D69CED0FC8F83B465E08
07AC11EC1DCC7D054E807A43336DDE408A5393A48556123272CEEEE72F1660B71927D38561AABF5C
AC1DF1734633C602F8F2D5: Everything
Note the hierarchy of code groups - the top of the hierarchy is the most general ('All code'), which is then sub-divided into several groups, each of which in turn can be sub-divided. Also note that (somewhat counter-intuitively) a sub-group can be associated with a more permissive permission set than its parent.