When your documents include pictures, charts, or other graphics it’s nice to add a caption to describe more to the reader.

Select the picture or graphic you want to add your caption to.  Click the References tab on the Ribbon, Choose Insert Caption, click the New Label button and type in your caption.

This will bring you back to the Caption box and as you can see the Caption and Label fields are populated.  Click OK one more time.

Word applies the caption to the image which I highlighted in green.  You can use this for any type of image in your Word document.