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A name tag is an item used to name mobs in the world. Name tags can be found in dungeon chests, fished or traded with villagers.
To use a name tag it must first be renamed with an anvil. The player can then use it on a mob to give it the name given to the name tag from the anvil. Mobs can be renamed multiple times.
Any mob that receives the name "Dinnerbone" or "Grumm" will be rendered upside down. Naming a sheep "jeb_" will cause it's wool to fade between the dye colors, producing a rainbow effect. Naming a rabbit "Toast" will cause it to have a special memorial skin.