Blogger Beta provides an easy way to create link lists even for those who don’t know HTML. But, there is no such functionality for drop-down menus. I found an interface, similar to that of Beta, with which you can easily create drop-down menus and add them to your blog with one-click! ;)
Just goto Drop-down menu creator page and add your menu items one by one by providing a name and URL for each item. 
The updated menu will be shown to you. Once you created the menu , Click the button to add it to your blog. You will see a page , where you can select the blog (if you have more than one), provide a title for your menu and then click “Add Widget“. You will see the widget getting added to your sidebar which you can move around to wherever you want. All this can be done without touching the template code!
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Hi!
I am trying to do a dropdown menu for the posts within each label. Your dropdown menu is indeed easy to use - but what if I needed to add more posts/URLs under the same heading?
is there a way I can add options as and when I post them?
Dear Sujatha ..
First of all make yours blogs available for Public ..As you have Disable this to some Restricted user. You can enable it from Setting. Second To add more Url you need to do This manually from the Code .If you dont able to do that.then drop me comment i will do this for you.Just give a little stress to yrs Mind abd you can do that.
Thanks
Scrapur.com