How to set color on labels

Pre-requisites: 

User should have Edit issue permission to change color of any labels.

Step 1 : Go to any Jira Issue

Go to any Jira issue

Step 2 : Open color select dialog

To open color select dialog you need to hover on any existing label in Jira issue.

Step 3 : Click on the color of your choosing

Clicking on the color will set the color of the labels throughout the project.

Step 4 : Have a beer!

You're all set! The color is set for the label.