If you would like to move the position of your application icon labels just for the sake of doing so, or to compliment a theme of yours, then check out a new jailbreak tweak called LabelUp Pro by iOS developer iTetuo.
With this tweak, you will be able to change the vertical alignment of your application icon labels on your home screen, in folders, in the App Switcher, and in your application dock, as shown above.
You can move them anywhere you want them to be, whether you want to just leave them where they are, adjust them only slightly, put them in the middle of the application icon, or even put them above the application icon as we have in the examples above. All of the configuration is done from the preferences pane that you will find in the Settings application:
You will have to do a little experimenting since the sliders don’t give you much insight as to where the labels will be. So when you set an amount that you feel confident with, tap on the respring button at the bottom of the preferences pane to save your changes.
Just as a reference point, the values we used in our example were: Home: 75, Dock: 75, App Switcher: 100, and Folder: 75.
If you want to give LabelUp Pro a try, you can download it from Cydia's BigBoss repository for just 99¢. You can also download the developer's other tweak called LabelUp, which is free and does only a fraction of the features LabelUp Pro does. LabelUp Pro is compatible with iOS 5.0 and later.