Audacity 1.3: Improved Label Tracks
Label Tracks are Audacity's way for you to create markings and annotations within your project. In Audacity 1.3, Label Tracks are much improved, with support for overlapping labels, and support for modifying both the left and right edge of the label region just by clicking and dragging.
To create a label, start by selecting some audio.
Select 'Add Label At Selection' from the Tracks menu.
Type some text into the label.
Click and drag the handles to resize the label.
Later, you can retrieve the selection - just click inside the label.
After you click, the label region becomes the current selection, allowing you to perform an operation on other tracks in the area within the label.