“Google Labs” is an option in most of the major Google Applications, comprising an extra set of functions that can be enabled to enhance user experience. For example, Google Mail Labs includes lots of nifty stuff like inline images in mail, signature tweaks, a POP3 refresh button; all individually configurable in mail settings.
These bits of functionality/code are part of the larger Google Labs initiative, which contains a few things that are (frankly) barking mad, and a few really fantastic additions to current products. Google Labs Test Tube, the experimental version of You Tube, is particularly worth a look.
Recently I noticed a Google Labs option in Google Maps, and there are some really great ideas in there. Here are my favourites:

Distance Measurement Tool: measure the distance of a path on the Earth

Short URL: Shorten the Maps "Link" to be a more compact URL.

Drag 'n' Zoom: Zooming in on a specific part of the map is now fast and easy. Simply click the Drag 'n' Zoom button, draw a box on the map, and zoom! You're there!

Aerial Imagery: Add Aerial imagery to the map! Aerial imagery gives you rotatable, high-resolution overhead imagery presented in a new perspective. Currently imagery is only available in certain areas, but we're adding more all the time.

LatLng Tooltip: Displays a tooltip next to the mouse cursor showing the latlng directly underneath it.

LatLng Marker: Adds an option to the context menu that lets you drop a mini marker showing the latlng of the position that the cursor was pointing at when the context menu was evoked. (Marcelo C)