I started gathering up yarn left over from a knitting project, and thought this might be a helpful tip.
The plastic bags that retail stores use to package curtains, drapes, sheets, blankets, etc. make great yarn storage bags. Most of them have an interior pocket that holds a card showing the item information. This pocket will hold a ball band and some sticky notes that contain the basic information I jotted down while knitting. (If you use sticky notes, be sure they are stuck together, back-to-back, so you can get them out again. How do I know that?!) It is also usually possible to fold up a sheet of copier paper and stuff that in there as well.
This is a bag that originally held floor-length sheer curtains. It holds several balls of left over yarn and the tension swatch in the main compartment. I try to keep these bags in some sort of order...all balls left over from a single project, all balls from a single brand/weight, or whatever makes logical sense.
Good use for an item that often ends up in the trash. If the labels bother you, they usually peel off. Sometimes one is stubborn. Saturate it with Goo Gone or cover with a cooking grease of some kind (shortening, oil, margarine) and let it set a while. The grease breaks down the adhesive and makes it easier to remove the label.