In contrast to the hard disk, where you store a large quantity of data in well-organized directories, a floppy typically stores specific software or data. The number of floppies you might have to maintain often runs into hundreds, or even thousands. Labeling floppy disks appropriately is the easiest method of identifying data and software.
Paper Labels
Paper labels are used with floppy disk for external identification. As soon as you save any data on a diskette, you should use the label to indicate the contents of the diskette.
Software Labels
Apart from the external labels, software labels, also known as volume labels can be assigned to diskettes. You can assign a character label to the disk to indicate its contents.
While you are formatting a diskette, you can assign a volume label. The DOS command LABEL may also be used for this purpose. It accepts a name from the keyboard and stores it as the volume label. For example, to label the diskette in drive A use the command:
LABEL A:
When a diskette is formatted, the volume label gets erased and you can assign a new one.