docs: how to update labels (#3)

Author: eddiejaoude

README.md

@@ -2,6 +2,8 @@
 
 Template repo with docs and GitHub Actions etc, to create other projects.
 
+![screenshot](https://user-images.githubusercontent.com/624760/113267767-9e331c00-92ce-11eb-8e47-efb02d3c7fa2.png)
+
 ## Usage
 
 ```yaml
@@ -27,4 +29,31 @@ jobs:
         repository-name: 'gh-action-open-source-labels'
 ```
 
-![screenshot](https://user-images.githubusercontent.com/624760/113267767-9e331c00-92ce-11eb-8e47-efb02d3c7fa2.png)
+## Label standards
+
+> To facilitate the community in finding ways to contribute that match their experiences and skillsets, we have developed a comprehensive system for labelling issues and PRs. This is an introduction to this standard labelling scheme.
+
+> Labels consist of three fields, viz. name, description and color. Label names should have a consistent format to aid both filtering within the github UI as well as scanning visually through the list. The following format is the most suited to this task (where ⎵ denotes a single space):
+
+```
+<emoji>⎵<category>:⎵<name>
+```
+
+Using the label convention from https://opensource.creativecommons.org/contributing-code/repo-labels/
+
+## How to update the labels
+
+To add a new label, update the `labels.json` file and the GitHub Action will do the rest.
+
+```json
+[
+    {
+        "name": "good first issue",
+        "color": "7f0799"
+    },
+    {
+        "name": "help wanted",
+        "color": "7f0799"
+    }
+]
+```