Word relies on styles quite a bit for formatting. This is understandable, as they are a very powerful feature. Given that fact, it is very odd, indeed, that Word doesn't define any special styles that are used for putting together labels. (Word does this for envelopes; just not for labels.)
Instead, Word creates labels using the Normal style, applying explicit formatting as necessary according to your settings in the Envelopes and Labels dialog box. Since the label lines are based on the Normal style, one possible way to change the default formatting for your labels is to simply change the formatting for the Normal style. This is a fairly drastic solution, however, since Normal is used for so many other purposes in Word.
One possible solution is to create special document templates for your labels. The only thing you would need to do is change the formatting of the Normal style in these templates. When you create a new document based on one of the templates, and then choose Envelopes and Labels from the Tools menu, Word will base your label on the Normal style in the template.
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