I made a wide variety of hot sauces to give as gifts this year. I used to use labels on the glass jars but since they are not straight up & down, the labels always crinkled. Having the labels on the lids makes it so much easier and the lids gets thrown away, so no label to have to scrub off the jar to reuse it.
Use the templates they give you on OnlineLabels.com, they work great. I use the Photoshop template and then just hide the layer before printing.