I organize all sizes of fabric by color. That is the how my mind thinks not by size. That said, I love my 2.5s and use them a lot. I store all of my little squares in 13X9 boxes that I found at the Dollar Store. Eight boxes with a strip of painter's tape as a label indicating the color in the box. They stack easily and after a year, I still like this organization.
My other fabric, fat quarter and larger are folded and put in mid-sized bins that I stand on their end minus minus their lids so I can see the individual pieces. Again, after a year it is still working for me. I have an additional bin for 2.5 strips all mixed up and totally unorganized but in one bin with lid and second bin holding bias scraps.
Lastly, I have two of large totes of all sizes of white/cream and another of pinks. This year may be the year of pink. I want to reduce that large tote to a mid-sized on bin on end.
