To arrange your books by colors is the perfect solution for a decoration magazine picture! But it’s hardly the most practical or functional solution for your home, if you are looking to be organized.
What you should do at home is separate your books by categories, genres or subjects. After that you can arrange them the way you want, even by colors. Display you cook books in a kitchen shelf and your language books and dictionaries in the study room. Or, if you do have a library or reading room, just separate the categories into different shelves.
Labels are always a great idea as well: fiction, biographies, classics, gardening… you name it!