How to make text shrink in UILabel ?

myLabel.adjustsFontSizeToFitWidth = YES;
myLabel.minimumFontSize = 10.0; //You can set to anything like 5.0 or 8.0

If you created UILabel and autoresized programmatically, you might need this for resizing label's text accordingly.

How to create UILabel with multi color in iPhone ?

Unfortunately, bottom line is that you can't do that  in UILabel. Either you gotta use UIWebView or you gotta use CoreText frame work. HERE is my tutorial for CoreText beginners hope it helps you to create the Text Labels with multiple color. Comment me or email me in case of any questions.