Roles required: Site Admin

Navigate to:
Communication area > Contacts
On the top right, there is a quick-link that says "Contact Labels" - click it.

Alternatively, you can go to:
Settings & Admin > Site Settings > Term lists/taxonomy
then click on "list terms" across from "Contact labels"

Now, follow the instructions below depending on what you'd like to accomplish:

Add a term

• Click on the link above the table that reads "add term"
• Add your term name
• You can ignore the description field, or for an internal reminder, you can list what this label will be used for (it will only be visible here)
• Click save at the bottom of the page

Edit a term

• click "edit" across from the term you'd like to edit
• edit the term
• save the page

Delete a term

• click "edit" across from the term you'd like to edit
• click delete