Color banding is set in the Report Editor, from either the Grid View or the Design View. It cannot be set from the Graph View or the SQL View. To access the setting follow the steps below:
Banding preference
Banding colors
Banding criteria
General
If users only want the headers to be banded, like in the example below, check the option By row headers:

The banding criteria options allow users to set a pattern for banding. For example, to apply banding by number of rows, apply the first color to the first three rows and the second color to the following row. Or, choosing the "by row headers" option by header(in this case, Category), results in the following report:

TROUBLESHOOTING:
If color banding for cells with metric values does not seem to be functioning, ensure that the Pattern box for the metric values format is unchecked. This setting is located on the Metrics tab in the Formatting Options window.