select to create a new blog or peice of content, there you can select labels, click edit and delete/rename/create lables.

Note: You must have admin rights.

Are you referreing to the (edit) option in the label interface? That just allows me to edit a group name. Not sure which edit you're referring to. Thanks.

Sorry click on the label you want to delete to edit it, you will see a delete label button at the bottom of the label.

Got it. Thanks. I didn't see that link earlier. Much appreciated.