1. Goto Design -> Edit HTML
2. Make sure Expand Widget Templates check-box is not selected
3. Search for following line
<b:widget id='Label1' locked='false' title='Labels' type='Label'>
4. Replace the above line with following content
<b:widget id='Label1' locked='false' title='Labels' type='Label'>
<b:includable id='main'>
<b:if cond='data:title'>
<h2><data:title/></h2>
</b:if>
<div class='widget-content'>
<select onchange='location=this.options[this.selectedIndex].value;'>
<option>Choose a label</option>
<b:loop values='data:labels' var='label'>
<option expr:value='data:label.url'><data:label.name/>
(<data:label.count/>)
</option>
</b:loop>
</select>
</div>
</b:includable>
</b:widget>
5. Click on SAVE TEMPLATE button to save the changes made.
6. Click the View Blog option to verify.
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