A Label can be attached to a set of files/folder in the TFS which in turn can simplify retrieval of the source code for a build process or further development. Labeling is very handy during any of the following commands

• Branch Command
• Difference Command
• Dir Command
• Get Command
• History Command
• Merge Command
• View Command

There are no specific rules on how to call a label, but more often you will indicate a release number or milestone. For instance, “Beta1” would be a good choice for the code being checked into the Source Safe for the “Beta 1” Release.

It is important to know that Label is non-recursive and if applied to a folder, it does not necessary means that everything under this folder is labeled the same way.
tf label MyBuild MyProject1 /recursive