yeah, this does not work with partitions on the hard drive. Theres are a messy solution in the forums somewhere, but for a newbie like me, i'd like to rename a label with the same ease as if it were a directory name.
It has been impossible to implement in Gnome due to deficiencies in present virtual fs layer. That layer will be fixed in the next release, making building this properly into the properties dialog of Nautilus possible. Just bump the developers to do it upstream Gnome and voila.