I made a block that creates a label from a costume! It doesn't support black pixels or transparent pixels (due to how the symbols render on the block), and it gets weird with big images, but in small areas it's a great use!
You can drag and drop the script to get it in your project. 
wha
I;m not quite sure how to use this?
Why wouldn't it work with black pixels? All you need to do is set the block category to a custom category that is black, then black (and fully transparent) pixels will look right.
Meaning that if you set a symbol color to 0-0-0,
Of course, I could avoid this by setting the color to 1-1-1 or 0-0-1, etc., but I'm too tired to do so.
Actually, it does indeed turn black.
The reason it's white for you, is because you have fade blocks on, and that turns black parts to white to make them readable.
It would probably be black if they turned on flat design
Ah, I see it. When "Fade blocks" > 50, it'll just be white, just like the dropdown arrow.
Do you have a costume with the name in the dropdown?
no
You need to select a costume that exists in the project.
This shows one of my mistakes in the block. 
I forgot to add the costume parameter, so it always chooses the current costume, which means you would have to go to the costumes tab, choose the costume you want as a block label, go back, and then click the block. I'm fixing that real quick!
Fixed. Even though the post looks the same, it's properly handled!
