Gmail Labels: everything you need to know | Blog | Hiver™ 7. How do I create nested labels? There are a couple of different approaches to creating nested labels, here they are: A. If you want to create a new nested label under an existing label. 1. Click on the small arrow button beside the label name in your label list. 2. A drop-down menu will appear, click on 'add sub-label' at the bottom. 3.