MS Publisher (Windows only) is what I used for a long time. Then I got tired of pulling labels off my own bottles. Now, if I want labels that are going on bottles I plan to gift, it's GrogTag all the way. Use and adjust one of their templates (some let you add your own art), or upload your own complete design. i've also printed my own vinyl labels from "bumper sticker" stock that Office Depot used to sell, but not any more.
To keep bottled beers ID'd for my own purposes, I use Avery 3/4" round stickers which fit perfectly on the crown. And I go online to print them with Avery's free label printing software. You can fit a lot of small, arched and straight text on them. The software then churns a sheet of 24 stickers into a .pdf file which you print locally.