The CAGED 'System' is the way the guitar fretboard (in the Standard Tuning only!) can be divided into manageable chunks which are easier for beginners than certain other fingers, but also very useful for advanced players.
You will be playing scales in five different positions, using four-in-a-row fingerings which reduce the need for stretching the fingers, but we will be using position shifting when necessary.
A good next step would be to learn the 3 Notes Per String fingerings for this scale.