You would have more of a smudging/drying problem with an ink-jet
type printer. Laser printers function much like photocopiers,
using a dry toner system, so damp ink is a non-issue. Smudged
laser printing means something is wrong with the printer.
Labels are available in a variety of sizes from office supply
houses. Avery is a well known brand, but there are other brands
as well. You can also buy full-sheet labels and cut them to your
own size (after printing) using a paper cutter.
Microsoft Word has a feature that understands printing labels.
You can tell it what standard label size you have, or give it a
custom size, and it will set up a table (or grid) for you. If
you want, it can then merge data from a Microsoft Excel
spreadsheet into the labels, or you can put the same thing on
every label. I’m not certain, but I suspect other reputable word
processors have this feature, too.
I hope this helps,