I know you can disable the label of an activity by adding
android:theme="@android:style/Theme.NoTitleBar"
in AndroidManifest.xml, but even if I do so, the Graphical Layout tab of the layout xml file is still showing the title bar, I think there should be a way to disable the title bar in eclipse UI but couldn't find it. Has anybody ever found where it is?
Look at the selected theme that is being rendered in preview of your layout. You'll get it at the top bar of your layout graphical preview where you select different preview screen, theme , orientation etc. Select the correct theme from there, i,e what you set in Manifest , then you'll not see the titlebar. See the image...

You can change theme directly in Graphical Layout tab 
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