Here is the way I do my labels.
1. I use t-shirt transfers. You can get several labels from one sheet. I type what I want on the label in Word, usually in a text box. You can change the font and add clipart if sew desired.
*Be sure to mirror image the document before you print it on the transfer!*
2. Next, I cut a piece of white fabric (you can use any color, I just always use white). Make a sandwich = the white fabric, the transfer upside down, and then a scrap piece over top. The directions are in the tranfer envelope.
3. It will look like the picture above. I then trim around the label. I use applique wonder or heat-n-bond to adhere my labels. Cut a piece of applique wonder and put the glue side on the back of the label. I use that scrap piece of fabric again. If you don't use that fabric, it tends to gunk up your iron.
4. The applique wonder has a peel off back on it. When you peel the back off, it is sticky. You can position this on the back of your quilt. If it is not where you want it to be, it is still removable. Once you iron it, though, it becomes permenant! Put the label where you want it to be.
5. Again, before you iron, put that scrap piece of fabric over the label. Iron.
6. Walah! You have a label that does not require any turn applique or stitching down. This will stay forever and not ravel or fray. Happy labeling!