DragLabel.java

import javax.swing.*;
import java.awt.*;
import java.awt.event.MouseAdapter;
import java.awt.event.MouseEvent;

public class DragLabel extends JPanel {
    private String[] layerStrings = {"Text1 (0)", "Text2 (1)", "Text3 (2)"};


    private DragLabel() {
        setLayout(new BoxLayout(this, BoxLayout.PAGE_AXIS));
        JLayeredPane layeredPane = new CJLayerPane();
        add(layeredPane);
    }

    private JLabel createColoredLabel(String text, Point origin) {
        JLabel label = new JLabel(text);
        label.setVerticalAlignment(JLabel.TOP);
        label.setHorizontalAlignment(JLabel.CENTER);
        label.setOpaque(true);
        label.setForeground(Color.black);
        label.setSize(50, 50);
        label.setBorder(BorderFactory.createLineBorder(Color.black));
        label.setLocation(origin);
        return label;
    }

    public class CJLayerPane extends JLayeredPane {
        CJLayerPane() {
            setPreferredSize(new Dimension(300, 310));
            setBorder(BorderFactory.createTitledBorder("Move the Mouse to Move Duke"));
            MoveMeMouseHandler handler = new MoveMeMouseHandler();
            addMouseListener(handler);
            addMouseMotionListener(handler);

            Point origin = new Point(10, 20);

            int offset = 35;

            for (int i = 0; i < layerStrings.length; i++) {
                JLabel label = createColoredLabel(layerStrings[i], origin);
                add(label, new Integer(i));

                origin.x += offset;
                origin.y += offset;
            }


        }
    }

    public class MoveMeMouseHandler extends MouseAdapter {

        private int xOffset;
        private int yOffset;
        private JLabel draggy;
        private String oldText;

        @Override
        public void mouseReleased(MouseEvent me) {
            if (draggy != null) {
                draggy.setText(oldText);
                draggy.setSize(draggy.getPreferredSize());
                draggy = null;
            }
        }

        public void mousePressed(MouseEvent me) {
            JComponent comp = (JComponent) me.getComponent();
            Component child = comp.findComponentAt(me.getPoint());
            if (child instanceof JLabel) {
                xOffset = me.getX() - child.getX();
                yOffset = me.getY() - child.getY();

                draggy = (JLabel) child;
                oldText = draggy.getText();
                draggy.setText("What a drag");
                draggy.setSize(draggy.getPreferredSize());
            }
        }

        public void mouseDragged(MouseEvent me) {
            if (draggy != null) {
                System.out.println("draggy called");
                draggy.setLocation(me.getX() - xOffset, me.getY() - yOffset);
            }
        }
    }

    private static void createAndShowGUI() {
        //Create and set up the window.
        JFrame frame = new JFrame("LayeredPaneDemo");
        frame.setDefaultCloseOperation(WindowConstants.EXIT_ON_CLOSE);

        JComponent newContentPane = new DragLabel();
        newContentPane.setOpaque(true);
        frame.setContentPane(newContentPane);

        frame.pack();
        frame.setVisible(true);
    }

    public static void main(String[] args) {
        javax.swing.SwingUtilities.invokeLater(DragLabel::createAndShowGUI);
    }
}