Nic is right. In addition to his answer, you may find the documentation useful.
This page tells you how to use labels to categorise spaces: https://confluence.atlassian.com/display/DOC/Using+Labels+to+Categorise+Spaces
And this page, and its children, tell you all about labels and what you can do with pages once you have labelled them: https://confluence.atlassian.com/display/DOC/Working+with+Confluence+Labels
I hope this answers your question! And a very happy holiday season to you. :)
Labels are there for putting arbitrary tags on pages, so that you can logically group them together, and search for them together. For example, in a confluence system dedicated to a zoo, you might label all the pages that refer to penguins indirectly with "penguin" (e.g. the pages that say "this animal is scared of penguins" or "penguins love to eat this")
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