Creating Labels _ Another good use of Microsoft Word is creating labels. It is designed with pre_defined templates that allow you to create labels and customize them according to specific measurements to fit your label's dimensions. There is also an available wizard that guides you through the process of creation through printing.
Click on the the template. At the bottom right of the dialogue you'll see two options: 'Document' and 'Template'. If you want to use the letterhead to send as a document or letter, choose 'Document.' If you want to edit the template, choose 'Template.' When you choose 'Document,' it gets saved as an MS Word document.