May have answered my own question. I read the RFC (3107) and found this bit
that helps clear things up a bit for me:

If exterior router A needs to send a packet to destination D,
         and A's BGP next hop for D is exterior router B, and B has
         mapped label L to D, then A first pushes L onto the packet's
         label stack.  A then consults its IGP to find the next hop to
         B, call it C.  If C has distributed to A an MPLS label for the
         route to B, A can push this label on the packet's label stack,
         and then send the packet to C.


On Friday, January 24, 2014, Ryan Jensen <[email protected]> wrote:

> Hello!
> I've been working through more labs lately and I came across part in Lab
> 29 that I do t quite understand ...
> I believe it's the final task where it says to share labels as necessary.
> The part I don't understand is the bgp part if this. Why do we need to
> configure neighbor x.x.x.x send-label?
> We already have LDP sessions setup between them. Shouldn't they already
> know about the labels they should be using?
> What do we gain by doing this?
> Thanks all in advance.
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