In deriving the Bloch theorem, they first give a Schrodinger equation,
$$\hat H\psi_n(r)=E_n\psi_n(r)$$ $n=0,1,2…$
$\hat T_R$ is a translation operator commuting with $\hat H$.
Its eigenvalue is
$$\hat T_R\psi_{k}(r)=e^{ikR}\psi_{k}(r)$$
$k=…$
For the reason that $\hat T_R$ commutes with $\hat H$, and they should have the same complete set of eigenvectors $\lbrace\psi_{nk}(r)\rbrace$. We should have
$$\hat H\psi_{nk}(r)=E_n\psi_{nk}(r)$$
$n=0,1,2…$
$k=…$
But this puzzles me, as we have $n$ eigenvalues for the Schrodinger equation at the beginning. For the Schrodinger equation itself I can't see where does these $k$ quantum number comes from. The set $\lbrace\psi_n(r)\rbrace$, with the number of $n$ eigenvectors, should itself be a complete set according to the Schrodinger equation, is it contradictory that we need $n*k$ number of eigenvectors $\lbrace\psi_{nk}(r)\rbrace$ to form a complete set?
At first, I thought that for a given $n$ value, $\psi_{nk}(r)$ might be degenerate for different $k$ value. But later, I realized that this is not true as a specific $n$ the eigenvalue (Energy) $\epsilon$ still change for different $k$.
I think for the SEQ. $\hat H\psi_n(r)=E_n\psi_n(r)$ $n=0,1,2…$, I agree with you that '$k$ labels the degeneracy of the energy eigenvalues.' as we have $$\hat T_R\psi_{n}(r)=e^{ikR}\psi_{n}(r)$$ $k=k_1,k_2,...$.
This means that for each $k$ in $k=k_1,k_2,...$, $e^{ikR}\psi_{n}(r)$ corresponds to the same energy level as $\psi_{n}(r)$. But $e^{ikR}\psi_{n}(r)$ ($k=k_1,k_2,...$) is not the same as $\lbrace\psi_{nk}(r)\rbrace$, they are quite different.