I was taught:
Cut a sheet of freezer paper letter size. Press it onto a light solid color fabric (same size as freezer paper). Place this in your ink-jet printer. It will feed in as a regular piece of paper.
On your computer, use Word or similar, design or just type out your label (name, date, quilt name, and whatever else) and then print to the freezer paper/fabric. Make sure you print on the FABRIC side.
Peel off the freezer paper, then press the printed fabric with a hot iron. This sets the ink and you have a label.
Then sew on (in any way you desire).