The present invention pertains to a heat transfer label that can be modified by an end user in order to indicate variable data prior to transfer of the heat transfer label to a substrate. The label can include fixed data and a region where the variable data is provided or applied and through which the data is viewed when the label is affixed to an object or item. A method for marking the variable data or graphic into the heat transfer label includes punching holes through, or selectively removing ink from, an area of ink located on the heat transfer label tape or strips. The blocks of inked areas are punched or the ink is removed from portions of the block inked area to form a pattern or code correlating to the variable data or graphic and may be configured to be read by human or machine.