I have a sheet of labels meant for small organizing containers that are quite small (0.3"x0.5") with a 0.075" space between labels. Since LibreOffice only allows 0.01" granularity on the label template dimensions, by the bottom of an 8.5" sheet (9 x 22 labels), that adds up to +/- 0.1" vertically which is a full 1/3 of the label, and on the right +/- 0.04" horizontally, which is about 10% of the label. Please increase the resolution of the label template dimensions so smaller labels can be used. For now, I’ll have to find another product to print these labels.
You want to file an enhancement bug here. You have to register.
ADD ON: Try setting your Units to mm. They have a resolution of 0.01 which is higher than 0.001".
Goto Menue:Tools>Options LibreOffice Writer>General to set the units.
Thanks for the idea to try metric. It worked great 