This machine is equipped with a peeler that allows you to easily remove the backing from the labels.
The peeler is located next to the tape exit slot.
 

1. Insert the label, with the printed surface facing the machine, into the built-in peeler.
2. Fold back the label to 180 degrees and quickly pull out the label.
   The end of the backing will be separated from the label.
   
   

Another method is to use a pen that has a pocket clip.
 

1. Hold the tape in your left hand, with the printed surface facing up, and hold the pen in your right hand.
2. Pass the tape halfway through the long narrow hole in the pen's pocket clip.
3. Turn the pen three-quarters of a turn towards you and pull the pen away from you.
4. Peel off the label backing.