I think I have found a bug in iOS 7 (not sure which version as I only found this last night so don't know how long its been here) on the iPad 2.
Can someone replicate this on their iPad (I have only seen this on my iPad 2 so unsure if it will be the same on other iPads) to see if this is indeed a bug:
When I open the Contacts standard app and open up any particular contact to edit, where you type in the phone number of the contact, there is also an option to add a custom label to assign against the phone number. Well, when you choose 'Add Custom Label' (which is at the top of the menu when the foreground box pops open), you are then presented with a box in the foreground and there is a space where you can indeed then create a custom label. The issue, however is this - when you have written the custom label, the 'Done' button is actually not in the foreground small box which you have open but is actually in the background screen (on the top right) which is not clickable? So, although there is an option to add a custom label, you can't actually click on 'Done' to save it?!
I tried a number of times and not once was I able to create a custom label on my iPad - I had to resort to creating it from my iPhone 5 (which has the 'Done' button on the foreground screen where you actually type in the custom label) and let it sync over to my iPad 2 via iCloud!
As I said, if I have missed exactly how to achieve this then apologies and perhaps someone could shed some light on this! If it is indeed a bug - I also do not know how/where it should be reported....?!