The Labels preference allows you to specify the color labels in the database. The label names are shared by all clients using the database.
Labels allow you to visually denote any items in the sidebar by color and can be used in all MacPractice abilities. This preference allows you to rename your color labels if desired. Some offices may like to name their labels with providers, offices, insurance companies, patient status (such as new, established, or in collections) and so on.
In the upper left corner of MacPractice there is a pop-up menu labeled by the word None. These are the color labels which will allow you to color code your patients. Highlight a patient, then select the desired color label from the menu.