Video: How to Make Pretty Labels in Microsoft Word In your "Home" screen, click the "Shapes" button and under "Basic Shapes," choose the circle. To make a perfect circle, hold down the "Shift" key and click and drag your cursor to draw your shape. Next, click over to the "Format" tab. Set your desired size on the far right side of the screen. (I picked 3.5″ x 3.5″.)