You can use this phrase to comment on the kind of things that a person likes. For example, if someone always buys fashionable clothes, you can say:
Rob has always had great taste in clothes.
On the other hand, if he buys strange things, you can describe it this way:
He has odd taste in clothes, don't you think?
Mostly we just say that people's taste in things is "good", "bad", "excellent", "horrible", or something simple like that. But you can also give a more specific description of someone's taste like in the example at top. Here's another example of a specific description of someone's taste:
Stark was notorious for his expensive taste in women, wine, and automobiles.