Gmail labels are tags that help categorize email messages, and they function similarly to folders, allowing users to organize and find emails later on. Users can create new labels by clicking the plus sign next to the Labels title in the label list, or by going to Gmail settings and selecting See all settings. They can also add a label to an existing email by clicking the Labels icon and checking off the desired label. Additionally, users can automatically assign labels to incoming emails using filters, which can be set up to apply specific labels to messages based on certain criteria such as sender or subject. Users can also delete labels from their account, either directly from the inbox or from settings. Furthermore, Gmail can be automated further by connecting it to tools like Zapier, which allows users to create automated workflows and integrate with other apps.