Gmail labels act as folders : Do more with labels!

What is the new link in Gmail page, Do more with labels! about?

Google has added a button to Gmail, which gives a way to you use Labels as folders.

The “Move to” button, drops down and shows all the labels you use.

Once you select a label, the message moves from your Inbox to Archive folder, after applying the Label to the message.

When you click the particular Label from the navigation bar, you can see all the messages with the label, and this gives a feel like using folders for the emails (Even if the message is archive folder).

Gmail still provides the capability to add multiple labels to a message, which is why Google has “Labels” concept instead of Folders.