A label paper processing method includes printing a print image on label paper with a cutting locus along a contour of a shape to be cut out, using a printer in which the label paper is fed to travel intermittently. While the printed label paper is fed to travel continuously, it is half-cut with a laser beam irradiated along the printed cutting locus, thereby forming a half-cutout in the label paper. Operations of control and adjustments of a cutting depth are reduced, and a precisely cut label sheet is obtained without cutting the supporting sheet.