1) Why is there mind at all?
...I thought this was self-evident. We have a mind because the ability to think is an evolutionary advantage. Plenty of creatures have minds. Dogs, for example. As humans, we developed more complex minds over time that have subsequently enabled us to have deep conversations like these. Why is there a mind? Ask Darwin.
2) Why does the mind have to put labels on things?
...Because that's the way the brain stores information. We see a book, and the brain labels it "book." We see a table, and the brain labels it "table." We need these labels and distinctions so we don't knock over the table when we're trying to pick up the book.
3) Why does the mind convince you that there is a you?
...Again, for reasons of survival and simplicity, it's important to be able to distinguish between "you" and "non-you" objects. Hand = you. Fire = non-you. If we couldn't tell the difference between the two, we'd get burned a lot. Also, when somebody asks you your name, it's much easier for everyone involved if you can say, "My name is asaris," instead of "What are you talking about? There is no Me to name."
The problem, and I think this is where our difference lies, is that people don't look past the superficial labeling that is useful in everyday life. We fail to see our intrinsic interconnectedness and sameness. We fail to realize, as was my original contention, that the concepts of "self" and "free will," while useful for getting through the day, are simply constructs of a very powerful mind trying to navigate through complicated world. They are no more real than the number
phi.