Labeling is a way to categorize your similar blog posts.
When you’re writing a post, click Labels on the right sidebar and assign a
label name you like, or you can assign multiple labels name separating them
with commas. Labels you’ve assigned before will show up below Labels option in
right sidebar, and you can just click them to assign them to the new blog post.
After you publish your post, the labels will be listed with it. Clicking any of
the labels will navigate you to a label search page containing only posts with
that label.
Why we assign labels to blog posts

And other most powerful advantage of labeling your blog
posts makes it easier for visitors who have reached your blog via search engine
to find other posts that they may be interested in – provided you add tools to
your blog that allow them navigate using labels. And also list posts in related
post widget below post contents. 

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