It works normally on my system, I would make echo off, like this:
::========label.cmd=============
@echo OFF
title the partition is being labeled
color 0b
label %systemdrive% SYSTEM
exit
::==========================
as I cannot see why you should put a title, change the colour of the window and echo commands, as it is going to run in a fraction of a second.
Maybe you have a problem with the %systemdrive% variable?
Try the following:
::========label.cmd=============
@echo OFF
title the partition is being labeled
color 0b
Set systemdrive
echo Currrent value of systemdrive variable is %systemdrive%
pause
label %systemdrive%
pause
exit
::==========================
This shows the value of %systemdrive% before trying to change label, (Press ctrl-C to abort the batch if value is incorrect) then lets you interactively supply the new name.
jaclaz