Try this:
Settings / Preferences / Folder Tree / Appearance
Under "Show in Folder Tree", click Favorites. Apply, OK.
Look at the bottom of the tree: Favorites should be there.
I'm not sure if you included your mention of "Folder Tree" in your description for the purpose that playful is thinking, or simply as an example of how you seem to want the label to be on the RIGHT instead of BELOW the icon... but if that's all you want, then on your toolbar, you have a button item that likely runs the command Favorites SHOWICONS... just make sure that you select right as the value in the "Show label" dropdown for that button as in this screenshot...