I have used the Acoustica CD-DVD label maker for a number of years. The cost is $21.95 and it has a lot of templates that make the process smooth and easy. It is worth checking out. When I first started using it, a free trial download was available. It supports printing directly to discs if you have the printer. The program also reads the tags on the disc if you have put them there. I use the freeware Media Monkey for that. It saves retyping artists and titles, etc. With the templates and designs available, the time spent creating a label is amazingly short and the quality excellent. As for paper you can use card stock which is better than ordinary typing paper, but paper can be bought in varying thicknesses and I use what I can find locally that is heavier than the usual but not as thick as card stock. Some papers may give you a better quality of photo print. That is a matter of personal taste and desire. The cost of producing CD labels is mostly from the ink the printer uses.

If you are going to print hundreds or thousands it might be more economical to make the master label and have the copies done by a printing company. Printers are available designed to print multiple discs.

Good luck.