I think a lot of people have run into this problem...the label makers just don't make the odd sizes poker chips require. It's not just the faux clays, the home Paulsons require 7/8 labels to cover the inlay too. And if you want to label the BCC chips, for example, I think they have a 1 1/8 center.
The guys who print them can cut them to any size. There was one place that I read about where they would custom cut labels, but as I recall, it was going to cost nearly as much for the blanks as what Jason (PPC) could print them for. (Also consider the cost of the printer ink you're using. A bunch of label sheets could use an entire cartridge.)
You could make a template out of plastic that would be the size you need, and after you print the 1" labels, you could use an exacto knife to trim the labels around your template, before you peel and stick them on. If you're doing like 1000 FC, though, I would think about the time and work required, and then just order some printed labels.
Stuffing labels in the cracks won't work, they won't stay down after awhile. I have some of the 1" vinyl labels that I used on some dice chips years ago...if I put one on one side of a FC, there is minor rubbing with the next chip in the stack...if I put one on each side, I get spinners. Our vendors have some super-thin vinyl that supposedly works better than the blank labels you can buy, according to some posters here. I just bought 1000 FC, looks like I'm probably going to cold stamp them with Staz-on ink after dying them.