Give each shelf in a linen closet one clear job
Assign shelves by the way linens are used, then fold and store them to suit the cupboard's actual depth.

Empty one shelf at a time
A linen closet can hold towels, bedding, cleaning cloths and several unrelated household categories. Emptying every shelf at once may create more disruption than the available afternoon can absorb. Start with one shelf, put its contents on a clean surface and identify the job you want that space to do. Finish that decision before moving on.
Check the cupboard for dampness, dust and damaged shelving. Linens should be clean and fully dry before storage. If the space has a moisture problem, deal with the cause rather than adding fragrance or another sealed container. Follow shelf load limits and avoid piling heavy items above head height simply because the upper shelf is deep.
Group by destination
Beds are a useful starting point. Separate bedding by mattress size, then decide whether each set stays together or whether pillowcases and sheets are easier to manage separately. A household with several identical beds may need a different system from one with three sizes. Use plain labels where the folded dimensions do not reveal the size.
For towels, sort by use and condition rather than forcing everything into matching stacks. Bath towels, hand towels and cleaning cloths need distinct places so a worn utility cloth does not accidentally become the guest hand towel. Retain only the quantity that makes sense for washing frequency and available storage. Extras that have no likely use can crowd out the linens needed every week.
Keep the most frequently used category on the easiest shelf to reach. Guest bedding can occupy a less convenient position if it is used occasionally. This arrangement may be visually uneven, with a wide towel section and a small pillowcase section, because the household's needs are uneven too.
Fold for the shelf, not for a photograph
Measure the usable depth and leave room at the front to grip the stack. A long shallow fold may work on one shelf, while a compact fold is easier in a narrow cupboard. Test with two or three items before refolding everything. If every towel must be compressed to fit, the shelf is probably holding too much.
Avoid very tall stacks that lean when the middle item is removed. Two shorter stacks may be easier, provided both remain visible. Shelf dividers can help with slippery items, but they should fit securely without damaging the shelf or creating sharp edges. Do not buy them until you know which category actually needs support.
Try the system with someone who did not arrange it. Ask them to find a fitted sheet for a particular bed and return a hand towel. If they hesitate between several stacks, the category or label may need clarification. This small test is more revealing than whether the folded shelf looks balanced when nobody touches it.
For a bedding set stored together, place the components in a way that makes the size and contents clear. Some people use one pillowcase as a container; others prefer a labeled basket. The method should allow the set to be removed without pulling apart its neighbors. Thick quilts may need their own shelf or another appropriate storage space rather than being forced into the same system.
Keep unrelated supplies from taking over
If the closet also holds toiletries or paper goods, give them a defined section. Store cleaning chemicals and medicines according to their own safety and environmental requirements, not wherever a gap appears among the towels. Fragranced products can also transfer scent to fabric, which may not suit everyone using it.
Leave a small amount of empty space for clean laundry returning from the wash. A closet arranged while half the towels are in use may look spacious until everything comes back at once. Check the system at its fullest point before deciding it is complete.
Review the shelves when seasons or household needs change. Remove a bedding size no longer used, replace a label that is misleading and move a frequently needed item closer to hand. There is no need to refold the entire closet on a schedule if the categories are still working.
The useful sign is an ordinary person opening the door, finding the correct sheet and closing it without disturbing three other stacks. A linen closet can be neat enough for that purpose without every towel edge forming a perfect line.