How To Create Labels For Avery 8160 Free Template Creating Avery 8160 Free Template By Using Photoshop To begin, open Photoshop and choose "File," then "New." Set the width and height of the file to 2.63 inches and 1 inch, respectively. Change the "Contents" to "White" and the "Mode" to "CYMK Color." Then press the "OK" key. Select "View" and "Fit on Screen" from the drop-down menus.