To invoke the Report Wizard, click the report's smart tag, and in the invoked actions list, click Design in Report Wizard... link.
The wizard guides you through the process of creating a label report. For detailed instructions on the wizard's steps, refer to Labels.
After performing the above steps you will see that the report's Detail band is now divided into three differently colored areas. The first area at the left-hand side indicates the actual available band area for controls to be placed within it. The gray area at the right-hand side is intended for the columns in which labels will be displayed, so it cannot be occupied by controls. Finally, the white area specifies an indent between the available and reserved areas.
Drop the required fields from the Field List onto the available Detail band's area, and adjust the layout.
If required, you can apply mail merge to combine several fields (e.g. FirstName and LastName) within the same XRLabel.