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On Wednesday, Google tweaked its Gmail Labels to add more functionality to the feature, helping you to use labels in a more efficient and organized way.

Your labels can now be found in a new area on the Gmail interface, right above your chat list and grouped together with Inbox, Drafts, Chats, etc.  You can also now control which labels you’d like to display on your user interface and you can hide the others under a “more” tab.

You can also now drag & drop messages into the appropriate labels, making the feature look an awful lot like folders.  You can also drag labels onto messages themselves too.  You can even drag labels into the “more” menu to hide them.

Google says these changes will eliminate the need for Right-side Labels, which was an experimental Gmail Labs feature. This is seemingly the first Labs feature that Google is retiring.

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