1. First of all you have to decide how you want to group your articles, according to the labels applied, and what group heading you want to give to each grouping of articles.
2. Navigate involves page of the label for first category which you want to use by clicking on the label in side bar. Copy URL address of this page.
For example the URL address of the label of Blogger Widget on my site is :
http://4share2016.blogspot.com/search/label/Blogger%20Trick
3. Now go to Dashboard > Layout > Add a Gadget > Link List
5. Enter "Categories" in title box
6. In the New Site URL box, paste the link of the label you've copied from the address bar to New Site URL
7. Enter the name of your Category in New Site Name then click on Add link and Save
8. For every label you wish to put into the Categories Section copy the link and add it to the New Site URL. By the end you will end up with two or more categories in your list
9. Use the arrow keys of each link to move them according to your choice where you want to place them.
