Hello Wallymagic Welcome to the Seven Forums!
The 100mb system reserved partition is placed there by the Windows 7 installer when that first partitions and formats a "raw" drive, drive with totally unallocated drive space lacking any existing partitions and places the main boot files and boot configuration there(BCD store).
As long as it works the way it is and isn't mounted as a logical drive you should be all set. To see that become labeled as "system reserved" you would either have to name the volume again seeing it mounted or perform a clean install of 7 fresh from the start once the drive was made raw again.
Labeling it that in the Disk Management for example would likely mean reassigning a drive letter temporarily to see that done while unnecessary if left hidden from view and direct access. For a look at just what is seen on it the 100mb boot partition had been previously mounted here and a drive letter selected to show how that looks.