How To Create Labels For Avery 8160 Free Template Creating Avery 8160 Free Template In Word. Select "Tools," then "Letters and Mailings," then "Envelopes and Labels" from the drop-down menu. The "Label Options" box appears when you click the label picture in the bottom right-hand corner. Scroll down to Avery 8160, select it, click "OK," then "New Document." On the page, there is a second page ...