Parke-Taylor functions are certain rational functions on the Grassmannian of lines encoding MHV amplitudes in particle physics. For $n$ particles there are $n!$ Parke-Taylor functions, corresponding to all orderings of the particles. Linear relations between these functions have been extensively studied in the last years. We here describe all non-linear polynomial relations between these functions in a simple combinatorial way and study the variety parametrized by them, called the Parke-Taylor variety. We show that the Parke-Taylor variety is linearly isomorphic to the log canonical embedding of the moduli space $\overline{\mathcal{M}}_{0,n}$ due to Keel and Tevelev, and that the intersection with the algebraic torus recovers the open part, $\mathcal{M}_{0,n}$. We give an explicit description of this isomorphism. Unlike the log canonical embedding, this Parke-Taylor embedding respects the symmetry of the $n$ marked points and is constructed in a single-step procedure, avoiding the intermediate embedding into a product of projective spaces.