Disclosed is a method and system for creating labels for cluster in computing environment. The system comprises receiving module, candidate items selector, combination array generator, coverage value analyzer, candidate pair selector, unique word filter and cluster label selector. Receiving module receives input data and candidate items selector selects candidate items occurring repetitively using n-gram technique to generate list of candidate items with frequency of occurrence. Combination array generator selects candidate items to populate two-dimensional array wherein each array element represents pair of n-gram. Coverage value analyzer determines coverage value for each pair of n-gram from array. Candidate pair selector selects pairs of n-gram from two-dimensional array to process and generate list of candidate pairs. The unique word filter determines number of unique words in each candidate pair. Cluster label selector sorts list of candidate pairs using coverage value and number of unique words to select cluster label.