Item labels are easily produced. The labels are actually just another report in the program.
From the main menu, click Reports | Labels | Item Labels, or use the Report Navigator.
Set the item label options as desired by selecting any categories by which to filter, ticking any necessary checkboxes in the item label options area, and setting up any preferences in the additional report options area. When ready, click the Preview button to review your work, then print a hard-copy if all is okay.
Item labels are designed to print on Avery brand #8160 labels (or equivalent) which are 1″ x 2-5/8″ in size, having 30 labels per sheet in a 3-column by 10-row layout. Most other labels, such as removable/re-stickable labels, will also work as long as the label size and layout is the same as the Avery 8160 product.
Below is an example report (which may have been cropped and shrunk to conserve space).