My brother in law has this.
You have to buy certian disk to use this feature. I have looked many places for these disk. I just seen some at Best Buy. They are a little more expensive, but heh...who cares. What you can do with them it kindof neat.
You can inscribe on the top of the disk a Label. I know it might sound funny, but it is that simple. You can design and make a label and it writes it ON the top of the disk.
Again you have to have a inscribe disk. Not just any disk will work. I am sure the internet has 'em cause the only place I have seen them is Best Buy.
If you need more, I will ask my Brother in law how he likes his.
EDIT: I don't believe there is ink in it. I do believe that it burns it to the disk. I will check more on it, I could be wrong.