Yeah, that gets weird. Basically, the Sith were a race of near-humans during the pre-Republic and Old Republic. They were quite adept in harnessing the power of the Dark Side of the Force, and attempted to conquer the galaxy. The Jedi harnessed the power of the Living Force, as they called it, to combat the Dark Side, and defeat the Sith. However, organized Dark Side force users often attempt to follow the teaching and techniques of the Sith, and use their name as part of the legacy. So "Sith" went from a race of conquering Dark Side users, to those who followed their teachings and ambitions - ie "The Way of the Sith".
Also messy in terms of race/culture confusion: Mandalorians. The original Mandalorians were aliens called the Taung who invaded from outside the Galaxy. They fought for control of Coruscant and were driven back. Eventually they settled on Mandalore, unlocking the secrets of beskar, Mandalorian Iron. They taught their human and humanoid subjects their language and culture as they began to die out, and eventually the subject races became the "Mandalorians". While the vast majority are human, there are others - Mandallian Giants, Togorians, occasionally other races. It's more of a culture than a race. And then there's the factions...
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