This is a problem I recently faced with my gmail account. Without creating one, I got a label with this name in my labels list. Even though I deleted it again and again, this label still appeared in the list.
Later I found a simple solution in getting rid of this malicious label.
All you have to do is, first delete the label from the labels list permanently, then change the password of your gmail account.
I found this as a solution, and hope sharing this will be a help to all the people with this same problem. :)