How To Format Labels in Word (With Steps, Tips and FAQs) After selecting the "Mailings" tab, click on the "Labels" option to open the "Envelopes and Labels" window. 2. Open the label options menu Once you've opened the "Envelopes and Labels" menu, choose the "Options" button to create a new label template. When you select the "Options" button, it opens a new window titled "Label Options."