I just wanted to show you some of the labels that I use on the inside of my sewing projects. There have been some wonderful tutorials on making labels and I think this is certainly one of the easiest. I use a standard label template found in any writing program. Avery labels even has a software program out there and tons of free templates on their web site. In any case, just choose the size you want. There are much smaller ones and much larger ones, depending on your usage. Check out your writing program to see what sizes are available in your particular program. This template has 30 labels to a sheet of 8 1/2" x 11".
I like to use one of these templates because it's really easy to design your labels, change fonts, add pictures, etc. It's easier than using a blank page (no template) and cutting and pasting your design several times. If you've tried this method, you know what I mean. Setting the borders can be a real challenge. These templates take care of all that for you.
Not a great picture, but here's a sheet of labels. If you click on it, you can see it a bit better. I print mine on fusible fabric sheets. I like to use the fusible sheets because they are nice and firm and I can iron them exactly where I want them before I finish the edges with a satin stitch, zigzag stitch, buttonhole, or whatever. No slipping around while working on them. I don't turn the edges under, I just leave them raw and then stitch them down. By using the fusible fabric sheets, I have very little fraying of the labels. If you wanted to turn your edges down, you'd have to use a template that gives you enough space (extra fabric) to turn under or make your writing and pictures smaller.
Play around and print your labels on a regular sheet of paper until you get the desired label, then use the fusible fabric or any fabric sheet for your finished product.