Product Navigation on a Custom Theme

[JoshGood]

Hi guys, I am wanting to setup the navigation of a store a little differently than most themes seem to be setup for natively. Using the example of Holley.com, they let you navigate to a finalized list or collection of products based on how you choose the broad categories at first. You start by choosing an overarching category (say "Ignition" for example) which proceeds to a group of Ignition categories. Choosing "Distributors" takes you to that section where you choose another filter. You do this a couple more times until you've narrowed down your search to all the products that fit that category, and its a really simple and fast way to almost do a process-of-elimination to get to the products you are interested in. My questions are: What is this type of navigation called, and how is this (or can it be) accomplished in Shopify?

Thank you!