I have done some pretty small fonts on my embroidery machine, so don't get discouraged about putting it all on one label. I use Bernina embroidery software, and there are special fonts that look like running stitches for tiny lettering. Most of her software types have something similar. I like to use the backing fabric for my label, embroider in a similar thread, then hand apply it to the backing after quilting. Subtle, but visible if you look.
Pam