A label assembly including one or more dissolvable thermal direct adhesive labels and methods of assembly and use. According to one embodiment, each label includes a base layer, a thermal direct layer, an adhesive layer, and a barrier layer. The base layer, which has an upper surface and a lower surface, is water-dissolvable and may be made of a water-dissolvable paper. The thermal direct layer is positioned directly over the upper surface of the base layer and functions in the conventional manner to produce markings therein in response to heat. The adhesive layer is water-dissolvable and is positioned below the lower surface of the base layer. The barrier layer, which is positioned directly below the lower surface of the base layer and directly over the adhesive layer, serves to prevent migration of the adhesive layer through the base layer and into contact with the thermal direct layer.