Okay well i have 1000 post across all of my blogs. A lot of the blogs are recieving little traffic. I havent used "Labels" once. Can this improve my traffic? How much?
In blogspot, label pages are not indexed in google. But Labels to act as tag ( like technorati considers blogspot labels as tags.) So you may get some traffic from tag pages. Also labels improve the navigation of blog.
Just think, the more pages you have available for google to index, the more chances you have to come up in their searchs. Just my opinion.
Personally I don't use labels or tags. Instead I use a Wordpress plugin that lets me enter the meta title and keywords for each post, as well as configure meta settings for my blog. It helps a great deal with SEO.