An improved label sheet assembly and application kit including an optional liner sheet, a carrier strip, and a removably attached label facestock sheet. The application kit further includes a stacked group of tabbed sheets and an alignment guide. The label facestock sheet assembly includes a plurality of cut lines defining a perimeter of a plurality of facestock labels spaced from one another in an offset manner that substantially corresponds to a set of staggered tabs extending outwardly from a stacked group of divider sheets. The carrier strip is defined by a plurality of cuts having substantially the same shape as a portion of the perimeters of the facestock labels, but with slightly smaller dimensions as its respective label. The user may separate the carrier strip from the liner sheet, exposing an adhesive back of the precut labels and place and align the carrier strip across the divider sheets such that the precut labels are placed on the tabs of the divider sheets. The user then pulls the carrier strip upwardly and away from the divider sheets such that a portion of each of the perimeters of the precut labels flexes to separate from the carrier strip and remain on the staggered tabs.