When I make embroidered labels, I try to make the lettering fit into one of the frames that are built into my machine. Clear as mud, I know, but those box shapes you can sew with satin stitches (can't figure out what else I'd use those frame shapes for). When the stitching is done, frame and all, I place a thin interfacing on the RS of the label and sew all around the perimeter just outside the satin stitching. I trim close to the stitching with pinking shears. Then I make a small slit in the interfacing and turn the the label right side out (like you do with applique) and hand stitch it to the quilt. That takes care of the raw edges without having to turn them all under. Hope this is clear.