Cursor not directly after last label in Labels Dialogue

Repro Steps

1. Add enough labels
   (so that it takes at least two lines to show all labels in Labels Dialogue)
2. Open the labels dialogue

Error
Text cursor for adding labels does not appear directly after the last label as expected. Instead, cursor appears after a large amount of space after the last label.

Please see - http://screencast.com/t/5HLziqoFBv

This is a regression, reproducible where the labels dialogue needs to show more than one line of labels.