Next: Step 4: Testing your circuit
Adding text to the circuit isn't necessary to make it work; if you want to show your circuit to somebody (like a teacher), then some labels help to to communicate the purpose of the different pieces of your circuit.
Select the text tool (, the
fourth tool in the toolbar's first group).
You can click on an input pin and start typing to give it a label.
You can do the same for the output pin. Or you could just type any old place
and start typing to put a label anywhere else.