Interlinking pages with labels - good or bad?

Dear BHW community, I have a site about beauty and makeup (120 articles now) - no penalties, all pages are indexed, but ranking very low still, the site is very young. I decided to make my site comfortable for people (not bots) to navigate and interlinked pages with tags for first time. I mean ..for example we have the article about mineral makeup and I included the link with that leads not to certain page but to /label/Mineral%20Makeup and its effective for making visitors stay longer, because they click the link and see many related articles. The main question is how can this affect the SEO? May be some of you tried to do something similar? Many thanks in advance. Oh, I forgot to say that Google also indexed all these lables and total google results increased twice, because I have about 100 Tags. How can this affect ranking? Thank you, friends.

Yes, you can do interlinking pages of your site. e.g: tags, labels, categories, pages, etc. This definitely affects SEO.

I suggest you to use Wordpress platform for your site.

I mean, I have "Labels" module in the sidebar, but also there are links to tags just from the text of articles. I havent found anything intelligible about this and I am thinking that maybe I must remove these links. May be its better not to risk with such things when Im not sure this may work good. However (again i repeat) that it makes navigation more comfortable.

Interlinking is a good thing. As long as you don't have a thousand links on every page, you should be fine.