I saw this once and it really works well! You will have to use one of the hand-held Dymo Label makers (like the old fashioned ones).
Don't forget to use a sanding block to lightly sand the top of the strip so the letters pop out.
Some of these hand held Dymos have different "wheels" which can be interchanged for different fonts and characters. Walmart and Target seem to have had the best selection and best prices. You can also go to an office supply store for a wider selection.
This is also a great way to use up some of those scraps!
Have fun and enjoy!