Etymology
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label (n.)

c. 1300, "narrow band or strip of cloth" (oldest use is as a technical term in heraldry), from Old French label, lambel, labeau "ribbon, fringe worn on clothes" (13c., Modern French lambeau "strip, rag, shred, tatter"). This is perhaps, with a diminutive suffix, from Frankish *labba or some other Germanic source (such as Old High German lappa "flap"), from Proto-Germanic *lapp-, forming words for loose cloth, etc. (see lap (n.1)).

Meanings "dangling strip of cloth or ribbon used as an ornament in dress," also "strip attached to a document to hold a seal" both are from early 15c. General meaning "tag, sticker, slip of paper" affixed to something to indicate its nature, contents, destination, etc. is from 1670s. Hence "circular piece of paper in the center of a gramophone record," containing information about the recorded music (1907), which led to the meaning "a recording company" (1947).

label (v.)

"to affix a label to," c. 1600, see label (n.); figurative sense of "to categorize" is from 1853. Related: Labeled; labeling; labelled; labelling.

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Definitions of label
1
label (v.)
assign a label to; designate with a label;
These students were labelled `learning disabled'
label (v.)
attach a tag or label to;
label these bottles
Synonyms: tag / mark
label (v.)
pronounce judgment on;
They labeled him unfit to work here
Synonyms: pronounce / judge
label (v.)
distinguish (as a compound or molecule) by introducing a labeled atom;
label (v.)
distinguish (an element or atom) by using a radioactive isotope or an isotope of unusual mass for tracing through chemical reactions;
2
label (n.)
a brief description given for purposes of identification;
the label modern is applied to many different kinds of architecture
label (n.)
trade name of a company that produces musical recordings;
the artists and repertoire department of a recording label is responsible for finding new talent
Synonyms: recording label
label (n.)
a radioactive isotope that is used in a compound in order to trace the mechanism of a chemical reaction;
label (n.)
an identifying or descriptive marker that is attached to an object;
From wordnet.princeton.edu