Gmail has added a little change to its Labels feature. Now handling longer labels will be easier. Long labels are always a tough affair when it comes to editing. Now you can add and edit label names up to 225 characters. Previously the limit was 40 characters well for normal usage its ok, but if you are using third party service like Outlook or IMAP service it’s not just enough.

Gmail will also shorten the label length if it’s too long to avoid cluttering, which happens when you have nested labels (Labels with sub labels). You can find the full structure of Label just by placing the mouse curser over the shortened label.

Source: Gmail Blog.