I suggest you back up your libraries before doing this sort of thing.
Tag the books in each library the manner you suggest (i.e. 'Classics I've Read', 'Awarded...', 'Other...'
Rename the biggest library to something like "Calibre Books" - you do that from the library icon dropdown - you can't rename the current library, so you'll need to switch to one of the smaller libraries.
For the two small libraries: select all the books (Ctrl+A), then use the Copy to library tool in the right click menu to copy the books to the "Calibre Books" library.
You could create virtual libraries for the three "xxxx I've Read" tags.
BR
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