There are several storage options for text in ArcGIS. Follow the links below for more information about each format.
The primary division is between dynamic labels and annotation. Within annotation, there are several options. If annotation is stored in the map document, it may be stored in dataframes within annotation groups, or it can be stored on the page. If annotation is stored in a geodatabase, it can be stored as either standard or feature-linked annotation. Finally, there may be annotation in a pre-ArcGIS format, including coverage, CAD, SDE3, or VPF annotation.