An index label and a method for applying an index label to a sheet or folder. A label assembly includes labels in a column, and each of the labels includes a fold line. A registration structure is adjacent the label column. Each label can be partially folded into a raised position, and the item to be label placed adjacent the raided portions, such as using the registration structure to align the item. The raised portion is lowered and adhered to the item. The remainder of the label is then removed from the label assembly and folded to adhere to itself and/or the item to form an index label on the item.
