Yes. Open word, do mailings, start mail merge, labels. Choose your label type and click ok. Click select recipients, use existing list. Navigate to your excel file. If it has more than one sheet, you will need to choose the one to get data from. You can click edit recipients to sort/filter your data. Then, to set up your label, click insert merge field for each column to use. You can put text between the merge fields, you can format them (font/color/anything). Click update labels to copy your merge fields, text, and formatting to all the labels. You will see "next record" at the beginning of each subsequent label. This will not print - it is showing you that the next label will use the next row of data from excel. When you are ready, click finish and merge, edit individual documents. Here you can preview your labels before printing them. If you want to make any changes, exit the finished labels and you still have your "unmerged" document to play around with.
Enjoy!