Query Regarding Data Labeling in Microsoft Purview

Hi Gaurav_Rajput , 

Microsoft Purview is the main portal for all information governance and compliance-related solutions (For example: Data Loss Prevention, Classifiers, Labeling, Insider Risk Management, eDiscovery, etc.)

Below are the high-level three steps for setting up Data Labeling in the Purview portal (https://compliance.microsoft.com/)

1. Create a Sensitivity Label (On the portal, click under "Solutions" on the left -- "Information Protection" -- "Labels" -- "+ Create a label")

2. Once created, Publish the Label via a Policy to make this label available to users (On the portal, click under "Solutions" -- "Information Protection" -- Use either "Label Policies" or "Auto-Labeling" depending on the requirements)

3. Policy will first run in Sumulation Mode to assess the impact and then it can be turned On.

You can create your Sensitivity SubLabels under default predefined parent Labels (Public, Internal, Confidential, and Highly Confidential) and then publish by calling "Parent/SubLabel" via a Label policy (Manual or Auto-Labeling)

https://learn.microsoft.com/en-us/purview/sensitivity-labels#sublabels-grouping-labels

Example:

A snippet from the below article from Microsoft specifically related to the default out of the box default labels:
"Microsoft recommends no more than five top-level parent labels, each with five sub-labels (25 total) to keep the user interface (UI) manageable. Levels are typically arranged from least to most sensitive such as Public, Internal, Confidential, and Highly Confidential."

https://learn.microsoft.com/en-us/compliance/assurance/assurance-data-classification-and-labels#what-is-a-data-classification-framework

thanks