A lot of people want to see their labels in order to see which ones have unread messages, but they don't want a long list of label names cluttering up the left hand side of their inboxes. To help out with this, we've made a Gmail Labs feature called "Hide read labels.
For More Info : http://gmailblog.blogspot.com/2009/09/new-in-labs-hide-read-labels.html
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