Gmail has recently added many new features and one of them is color labels. You can use the labels just like folders, except it’s better. You can name your labels accordingly, and assigned them to your e-mails. Alternatively, you can create filters for incoming mails and have them automatically labeled.
To create a label, just check the e-mails you want to label and click on "more actions" and then "new label".
To color your labels, all you need to do is hover over a label in the left hand label list and click on the drop-down arrow. You will be able to choose between background and text colors. Very cool, indeed.
Next evolution of labels via The Gmail Blog
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