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I've already done this:

Control Panel / System / Advanced / Performance Tab / 
Settings Button and put a checkmark in: Use Drop Shadows for Icon Labels on

But I still get a color in the font background. There's no "transparent" option in Properties/Desktop and there's always a color set here.

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3

A quick Google revealed that even with the 'Use Drop Shadows for Icon Labels' option enabled you need to check the following:

  • Right-click on Desktop -> Arrange Icons by -> Lock Web items on Desktop must be cleared.
  • If you have any web content on your desktop, transparency won't work. To check for web content: Right-click on Desktop -> Properties -> Desktop -> Customize Desktop -> Web and make sure all checkboxes are clear.
  • Your wallpaper must be an image file (.jpg, .bmp etc.) not an HTML document (.html / .htm)
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  • Side note: If it still doesn't work, your picture is likely a png file. I have faced this problem right now, and it worked after converting the picture to a jpg file.
    – Testerhood
    Apr 9, 2016 at 17:55

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