How to Use Gmail Labels (Step-by-Step Guide w/ Screenshots) Here's how to go about creating nested labels in Gmail: Step 1 Sign in to your Gmail account, and scroll through the left sidebar until you find the label to which you want to add a sublabel. Step 2 Hover your mouse over the label, and click on the vertical three dots icon that appears. Step 3 Click Add sublabel from the menu that pops up. Step 4