Custom labels are text values that are traditionally referenced from code to allow developers to present multilingual versions of a custom user interface.
In addition to multilingual custom code use of a custom label, you can also create them and reference them within the declarative setup, such as formula fields, validation rules (covered in Chapter 5, Managing Data in Salesforce CRM), and Process Builder (covered in Chapter 7, Implementing Business Processes in Salesforce CRM).
Let's take a look at customs settings in the next section.