I start with plastic coated freezer paper. This can be purchased at most grocery stores.
Step 1: Lets start with a 6" x 8" piece of freezer paper. Using a black Sharpie marker and ruler, draw lines on the paper side of the freezer paper, 3/8" to a 1/2" apart. Next cut a piece of muslin or choice of fabric used for the label a little larger than the paper.
Step 2: Layer the wrong side of fabric on top of the plastic side of the freezer paper. Using a cotton setting on the iron and the fabric on top press the two together. Note: Be sure that no paper is sticking out from under the fabric. You don't want to get a plastic coating on the iron.
Step 3: Don't seperate the paper and fabric yet.Using a permanent fabric marker write your information on the label.
A point of interest. I was just told by a woman that helps at a childrens theatre that a Sharpie, fine point, permanent, felt tip marker as shown in the photo above works great and won't wash out. This is the first time I've used it and I haven't tried to wash it. It might be worth experimenting with.
Peel the paper and fabric apart. Hold a hot iron briefly on the writting to help seal it.
Step 4: Using a rotary cutter and acrylic ruler trim the label. We trim about 1" from the writting on all sides.
Step 5: It's hard to see in the photo but fold the top and right side of the label to the back about 3/8" and press.
Step 6: Set the label in the bottom left hand corner of the quilt alligning the left and bottom edges of the label with the with the raw edges of the quilt. Pin in place. As shown in the photo above when the binding is turned to the back it covers the raw edges of the label. After sewing the binding to the back and using an applique stitch sew the folded edges of the label to the quilt back. ~
Thats all there is to it. Hoping this makes label making a little easier for you.