How to set color on labels
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.