The switch labels should be applied in such a way that the function of the switch is clear to the operator (the pilot), and the label is readable from a normal sitting position. Those are the main criteria an inspector/DAR/tech counselor will look for. This can be accomplished in several ways.
There are many variations of what type of labeling would be acceptable. You said the function label would be "aft," so I'm assuming you're talking about the right-side switch console on the RV-8. Some people orient their switches so that the "outboard" position is ON. The function label could then be inboard of the switch.
If you orient the switches vertically, as in your example, your labeling plan would probably work fine. Depending on lighting, the length of the switch handles, etc., you might be able to do this, too:
Pitot Heat
(Switch)
OFF
The important thing is to make it absolutely clear what the switch does, and remove all doubt about what will happen when you throw it in each direction. For this reason, I like to see function labels correspond to the ON position of a switch -- I think it's more intuitive to move the switch toward the function it activates, rather than away from it. Other people will undoubtedly have other opinions.
