Creating folders in Gmail, known as labels, is a smart way to organize your inbox and manage emails efficiently. Labels help categorize messages by topic, project, sender, or priority, making it easier to find and manage specific emails later. Unlike traditional folders, Gmail allows you to apply multiple labels to a single email for flexible organization. Whether you're managing work communication, personal conversations, or subscriptions, labels help keep your inbox tidy and stress-free. With color-coding and nesting options, labels can be customized to fit your workflow. A well-organized inbox boosts productivity and ensures you never lose track of important messages.