The CAGED system is a handy way of helping you to get to know the guitar and guitar music. Many guitarists have found this way of seeing the notes and chords an easy way to begin to understand guitar music and improvisation. The CAGED system is not for raw beginners. You need to know the location on the fretboard of the root notes of the chords C A G E and D.
Here is a video explaining the simplicity of using the CAGED system: