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This video tutorial demonstrates how to use commands to create value labels for variables in a dataset. The presenter enters a brief dataset where she wants to represent males with one and females with two. Viewing the dataset, she notices that there are no labels present. By typing a command, she sees that there are no labels defined. To rectify this, she needs to first define the labeling scheme and then apply it to the variables. By typing in "lab def," she can define labels and assign a name to the scheme, distinguishing it from variable names. This labeling scheme can be applied to multiple variables in the dataset.