Yet another addition from Google to make gmail more attractive on iPhone. Now you will be able to label your mails for iPhone as well.
To label an email, select a message then tap ‘Label as…” from the drop-down menu on the Floaty Bar. In the pop-up menu, select the label(s) you would like to use and tap ‘Apply’.
Although users will not be able to add new labels but its a pretty good addition to the gmail mobile. More info on the googlemobile blog
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