Labeling or Metadata in 365

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We have currently have 1 document library and within these we have various folders. On these folders and files.


We want to be able to classify our files due to there sensitivity - high, medium, low.


By default anything marked low everyone can see, while everything high only certain people can see and other policies would be in place so that high rated files cant be emailed out.


So the idea is the once everything is classified if you go into one of the folders withing the Document library and there is "high" rated document. Most users would bot be able to see this.


Can this be done with 365 labeling? or is there any other way to do this?

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