We did a batch of beer a while back for some friends. They were moving into their new house and wanted something special to commemorate it. I wanted it to be something extra special so I decided to make some custom labels. I got special bottle label paper but you could use the full size label paper you can get at the office supply stores or just print them on regular paper and seal it with packing tape. I wanted something that would come off easily (we reuse the bottles) so I sprung for the special paper.
Since it was celebrating their new house, I wanted the label to reflect that. I got a picture of the front of their house and used photoshop to turn it into a sketch. Then I added the type and printed them out. They turned out really nice and really took the gift to the next level.
The label paper came from our local brewing store. You wouldn't have to homebrew to do this either. You could use anything in a bottle, as long as you could get the old label off first. It would be great to do custom labels for a birthday or holiday party.