To measure emotion in daily life, studies often prompt participants to repeatedly rate their feelings on a set of prespecified terms. This approach has yielded key findings in the psychological literature yet may not represent how people typically describe their experiences. We used an alternative approach, in which participants labeled their current emotion with at least one word of their choosing. In an initial study, estimates of label positivity recapitulated momentary valence ratings and were associated with self-reported mental health. The number of unique emotion words used over time was related to the balance and spread of emotions endorsed in an end-of-day rating task, but not to other measures of emotional functioning. A second study tested and replicated a subset of these findings. Considering the variety and richness of participant responses, a free-label approach appears to be a viable as well as compelling means of studying emotion in everyday life.