Labels are a great tool to help you organize your library items!
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They can be applied in each item singularly, item by item, or in bulk.

Here's how to do both!

Click on the library item you want to label.

When in the item, click on Type a label name.... This may be at the top of the item by the name, or near the bottom depending on the item.

Type in the label you'd like to apply, and then click on Create and Add "(your label name here)" and you're good to go!
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Clicking Edit will allow you to check items in your library. Just check the boxes of items you want to label with a particular label!

Once you click on Apply Labels, a small menu will appear allowing you to type in a label and apply it to the items you have checked!
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To remove a label from selected items, simply check the box next to the label you would like to remove to remove the dash or checkmark. Once the check box is empty, click Apply and the labels will be removed!