You'd use a control array. Array index = 0 is the 'template', if the word has 3 letters then you'd load label control instances label(1), label(2), label(3).

Positioning them on the form is the tricky part. I suggest generating the labels in a picture box (You also have to set the parent property of the newly created instance of the label), adjusting the pic box width to fit the labels (including spaces between labels). And when that's done, simply center the pic box, rather than computing the position of each label based on a center.