Sometimes a label merely describes the item it's stuck to. Sometimes the label informs you of how the item is to be used. Or perhaps the label is all about status, making the garment or accessory more desirable than something without the label.
All of these labels are functional, imparting information and providing a service (although you could argue that the last ones are decorative only but I like them).
Gift tags from thequeenofcups
French apothecary jar from TheShabbyChicCottage
DIY sign kit from ourhobbytoyourhome
Merci ornaments from FrenchAffairs