Labels help you categorize and keep track of the kind of topics customers engage with you in conversation about. You can create a two-level hierarchy of Labels for detailed classification i.e. a Top level category and a second level of sub categories to drill down further.
You can access the Labels settings from Settings -> Labels (CONFIGURE) by going here.
Now to add a label, click +Add Label from the top right corner of the page
A dialog box pops up. Add the name of the Category here from the Category option. Let's say you name it ‘Payment Issues’
Name the Sub Category field and make sure the Sub Category switch is turned on and hit Save to save your label name. Your label has been created.
You can add any number of categories and subcategories, but duplicate categories cannot be created.
Note: Once a Label has been created, it cannot be deleted. It can only be edited or disabled. Hover on a label to see the option to edit and use the toggle to disable.