This slot call is running on the GUI thread. And when you get to the end of the function, is when the GUI has a chance to do updates.
You can force an update with:
ui->label->update(); // queues up an update event
qApp->processEvents(); // processes the update event
// start some longer code snippet
// ...
And also note that qApp is short for QApplication::instance(). Include <QApplication> to be able to use it.
UPDATE: QtConcurrent and QThread stuff
But like it says in @Mat's comment and referenced answer... this may be bandaid solution for something that really should be launched in a QThread or with a QFuture or some other QtConcurrent class. Thread Synchronization and related topics have a learning curve, so be careful when starting it, if you haven't done that before.
I liked how it was done here: http://qt-project.org/wiki/Progress-bar
Hope that helps.