On Hinduism Stackexchange, we have mythology a most popular tag. Since the word can have two different meanings i.e somewhat ambiguous nature, users often raise discussion on meta to rename or remove the tag. You can see the first question that discuss the issue with the tag at here.
Quoting the introductory part of the answer:
Here's the thing: the word "myth" has two uses in English:
A pejorative usage, referring to "a widely held but false belief or idea"
A non-pejorative usage, "a traditional story, especially one concerning the early history of a people or explaining some natural or social phenomenon, and typically involving supernatural beings or events."
The word "mythology", however, only has one meaning and that's a meaning that's related to the non-pejorative usage of the word myth.
So when we tag a question about a Hindu story as mythology, we're not saying that the story is false or fictional. We're simply saying that the question concerns one of the "stories that are part of Hindu religious beliefs", as the tag description I wrote says.
Though it's clear from the description or the excerpt of the tag, however user often find the word immediately convey the meaning "myth" and hence often try to avoid or rename it. You can find similar discussion here and here.
Recently we've an ongoing discussion on meta: New Community Consensus on use of Mythology Tag in which we're discussing to either completely remove or rename the tag or keeping it as it is.
Looking at it's ambiguous nature or looking at higher chances of getting wrong meaning by visitors, I feel it should be avoided like GNU suggests to avoid some confusing words. So, I'm thinking for a better alternative (in a single or two word) which can indicate something like sacred scriptural historical ancient stories
Note that the word choice "Legend" would not work since it indicates "a traditional story sometimes popularly regarded as historical but unauthenticated." in which unauthenticated part again create problem similar to the indication of myth in mythology.
Best Answer
canon - among its other meanings the following seems most appropriate:
although there are other meanings with religious connotations which may also be appropriate. Though originally applied to Christianity, I can see no reason why they should not apply to any other religion.