def diff(self, dim, n=1, label='upper'):
        """Calculate the n-th order discrete difference along given axis.

        Parameters
        ----------
        dim : str, optional
            Dimension over which to calculate the finite difference.
        n : int, optional
            The number of times values are differenced.
        label : str, optional
            The new coordinate in dimension ``dim`` will have the
            values of either the minuend's or subtrahend's coordinate
            for values 'upper' and 'lower', respectively.  Other
            values are not supported.

        Returns
        -------
        difference : same type as caller
            The n-th order finite difference of this object.

        Examples
        --------
        >>> ds = xr.Dataset({'foo': ('x', [5, 5, 6, 6])})
        >>> ds.diff('x')
        <xarray.Dataset>
        Dimensions:  (x: 3)
        Coordinates:
          * x        (x) int64 1 2 3
        Data variables:
            foo      (x) int64 0 1 0
        >>> ds.diff('x', 2)
        <xarray.Dataset>
        Dimensions:  (x: 2)
        Coordinates:
        * x        (x) int64 2 3
        Data variables:
        foo      (x) int64 1 -1

        See Also
        --------
        Dataset.differentiate
        """
        if n == 0:
            return self
        if n < 0:
            raise ValueError('order `n` must be non-negative but got {0}'
                             ''.format(n))

        # prepare slices
        kwargs_start = {dim: slice(None, -1)}
        kwargs_end = {dim: slice(1, None)}

        # prepare new coordinate
        if label == 'upper':
            kwargs_new = kwargs_end
        elif label == 'lower':
            kwargs_new = kwargs_start
        else:
            raise ValueError('The \'label\' argument has to be either '
                             '\'upper\' or \'lower\'')

        variables = OrderedDict()

        for name, var in self.variables.items():
            if dim in var.dims:
                if name in self.data_vars:
                    variables[name] = (var.isel(**kwargs_end) -
                                       var.isel(**kwargs_start))
                else:
                    variables[name] = var.isel(**kwargs_new)
            else:
                variables[name] = var

        difference = self._replace_vars_and_dims(variables)

        if n > 1:
            return difference.diff(dim, n - 1)
        else:
            return difference