By definition, fudjj's idea of what a private label is quite right!
How it may help you? For starters, if you are a business newbie many big name stores would not want to stock your products, likewise consumers will not be quite convinced about it either.
If for example you have a product (lets say something you came up with) and would want to market it, then that's where private branding/labeling comes in. Private branding will help get shelf space for your products and give you a chance to grow...
Here are a couple of articles that may have helpful information, please have a read:Link hidden: Login to viewLink hidden: Login to view
Hope this helps. Cheers :)