Labels are a great way to organize your Gmail inbox. Though you can easily create filters that apply label and archive particular mail messages. But now you can easily apply label to a any message in your Inbox and archive it with a single click as Gmail has updated top menus and buttons.

The toolbar at the top of mail messages now includes a new Move To button, that applies a label to selected mail message and archives it, that is message is removed from Inbox and archived with a single click. Earlier you had to apply label first and then archive the e-mail message.

And if you just want to apply the label and do not wish to remove a message from Inbox, simply use the Labels button. With this Move To button, the Labels will behave more like the folders.

Also if you use keyboard shortcuts in Gmail, then you can press v to move a message and l to apply a label to an open or selected message.

This feature is being rolled out and should be available by tomorrow morning if not available yet.