lispdoc - results for labels 

(labels definitions &body body)
Function: LABELS ({(name lambda-list declaration* form*)}*) declaration* body-form* Evaluate the BODY-FORMS with local function definitions. The bindings enclose the new definitions, so the defined functions can call themselves or each other.
Example:
(defun precedence (obj)
  (labels ((traverse (x)
             (cons x
                   (mapcan #'traverse
                           (parents x)))))
    (delete-duplicates (traverse obj))))
Mentioned in:
CLtL2 - 28.1.6.1. Introduction to Generic Functions
CLtL2 - 28.2. Functions in the Programmer Interface
CLtL2 - 3. Scope and Extent
CLtL2 - 5.2.1. Named Functions
CLtL2 - 7. Control Structure
CLtL2 - 7.1. Reference
CLtL2 - 7.2. Generalized Variables
CLtL2 - 7.5. Establishing New Variable Bindings
CLtL2 - 8. Macros
CLtL2 - 8.4. Compiler Macros
CLtL2 - 9.2. Declaration Specifiers
HyperSpec - Special Operator FLET, LABELS, MACROLET
On Lisp - Anaphoric Variants
On Lisp - Conditional Evaluation
On Lisp - Creating Context
On Lisp - Functional Design
On Lisp - Iteration with Multiple Values
On Lisp - Local Functions
On Lisp - Operations on Lists
On Lisp - Other Structures
On Lisp - Recursion on Cdrs
On Lisp - Recursion on Subtrees
PCL - local flow of control
PCL - manipulating the lexical environment
Successful Lisp - tail recursion

By Bill Moorier