In Word labels are actually set up as tables. You simply change the cell
margins. Select the entire table or the cells of interest (you have to be a
little careful about this since some label-tables have very small "spacer"
cells that ou don't want to change) and right click on table Properties. In
the tab Cell click on Options. This is where you can set the cell margins.
If there is a check mark in Same as Whole Table the cell margins are
probably greyed out. Uncheck that setting and set the margins you desire.
This way the margin changes will take effect only in the cells you want.

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