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Badges are the icons on the LittleBigPlanet and My Moon for story and user created levels. User created level's badge can have a customized icon made from any Sticker. The badges are "portals" to a level because when you click on the badge, it opens up and the camera zooms in, this starting your gameplay. The menu to perform functions on the level such as playing or editing it can be brought up by pressing the or button while aiming at the badge. When publishing a user-created level, the user can choose where on their Earth (My Earth section in Me) to stick the badge. Badges can also be named "Seals" as mentioned in one of the My Moon tutorials. In LittleBigPlanet 3, there are another type of badges called Adventure Craters.
A LittleBigPlanet Level Badge displaying an in-game sticker.