We all are given labels, by ourselves and by the world around us, in order to create a unity and cohesiveness to madness.
Whether the label is Son, Daughter, Spouse, Friend, Mother, Father, Student, Employee - general labels.
Or whether they are more specific - Fighter, Lover, Singer, Giver, Hater, Listener, etc.
When ever one is asked to describe oneself, the result is a myriad of self inflicted labels. I am funny, I am smart, I am selfish, I am mean, I am petty, I am generous, I am evil. These are labels we thrust upon ourselves and give to others to use to put a generality on us.
We will never be able to fulfill these labels completely, at all times. But they are useful in the general sense so that we have an idea of who we are that is, for the most part, consistent enough to give to someone so they may have a partial idea (though not entirely correct) of what labels we think we are.
Labels that other people place on us are done so through tainted eyes. Most people see others in regards to their selves. For instance, if I think you are smarter than I, I will label you smart. But if I think you are dumber than I, I will label you dumb. It has no regards to the objectivity of your actual state of being as you present labels of yourself, but to the comparitive nature that I view you.