Sensitivity labels let you apply encryption, sharing, and conditional access policies to the documents that your models identify. For example, you want your model to not only identify any financial documents that contain bank account numbers or credit card numbers that are uploaded to your document library, but to also to apply an Encryption sensitivity label to them to restrict who can access that content and how it can be used.
You can apply sensitivity labels to models, and to libraries where models have already been applied by amending the model settings and re-syncing the library.
You can apply a pre-existing sensitivity label to your model by going to model settings on your model's home page. The label must already be published to be available for selection from model settings.
Important: For sensitivity labels to be available to apply to your models, they need to be created and published in the Microsoft 365 Compliance Center.