If you will insert the labels widget, then it will expands too much when your labels is start increasing when it exceed 1000 then it will look so dirty so in that situation I have a solution for your just add scroll bar to your labels widget! Also See"How to add Scroll Bar in Labels/Tags Widget in Blogger"
Step 1: Click on Template tab
Step 2: Click on Edit HTML
Step 3: Press Ctrl+F and find ]]></b:skin>
Step 4: paste #BlogArchive1{ height:500px; overflow:auto; } just above the ]]></b:skin>
change the BlogArchive1 to name of your labels widget name
click on Jump to widget to find the name of your widget name
to change the height of labels scroll bar area edit height:500px to your desired size
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