A volume label is a name assigned to a storage device. If you see the current volume label message after executing a command in the Command Prompt, Windows is asking you to enter the volume label of the drive on which you are performing the actions.
Users can define a volume label for a storage medium as per their requirements. Assigning a volume label to different hard drive partitions or to external storage media is useful in certain cases. For example, if you use a drive partition only for storing official files and confidential data, you can name it accordingly. If you have more than one pen drive of the same brand, you can assign a unique volume label to each of them. This will help you identify the pen drives easily.
Do not confuse the term Drive Letter with the term Volume Label. Both of these terms are different from each other. A drive letter is an English alphabet assigned to a storage device or a drive partition, whereas a volume label is a string or name that you can assign to a drive partition or a storage device.