OPTION TWO—Grouped by object/entity
This is more how stylesheets are grouped or how styles are organised in a design document.
For example…
BASE
Body background color
Base text color
Base font
Base size
Base line-spacing
Link color
Link hover color
Link weight
LOGO
Logo color
Logo font
Logo size
NAVBAR
Background color
Background hover color
Link color
Link hover color
Font
Weight
Size
HEADINGS
H1 color
H1 font
H1 size
H1 weight
H1 case
H2 color
H2 font
H2 size
H2 weight
H2 case