Label’s is a very vital feature for Gmail which enables you to organize your inbox.
It employs the concept of folders where you can group related emails say from the same source. Suppose you have subscribed to a website’s newsletter, or nuggets, that regularly sends updated issues, you can configure your inbox to automatically send these emails to a specific label. This frees your inbox so u can easily find other new emails. You can group older emails to a different label to reduce the number of emails in your inbox list. You can also edit the label name as you see fit.