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  5. Creating and Configuring Sensitivity Labels and Policies in Microsoft 365

DEMO: Publish a Sensitivity Label with a Label Policy

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This course guides you through the actual process of creating and publishing labels through some practical demonstrations from the Microsoft 365 platform. After watching the demos in this course, you should have a basic understanding of how to create sensitivity labels and how to publish them with label policies.

Learning Objectives

  • Get a basic understanding of sensitivity labels and how to create them
  • Learn how to create a label policy and publish labels

Intended Audience

This course is intended for those who wish to learn how to create and configure sensitivity labels and policies in Microsoft 365.


To get the most out of this course, you should have a basic understanding of Microsoft 365.


Hello and welcome back. In the previous demonstration, I walked you through the process of creating a sensitivity label called Personal. Now you'll notice here I also have one here for bank account, but this is for another demo I was working with in between these videos.

So what we're gonna do in this demonstration here, is publish this personal sensitivity label with a label policy. So what we'll do here is we'll click on label policies and you'll see here, when this comes up, we have no policies created at the moment. We're gonna fix that right now. And remember what a label policy does is allow us to publish our labels to our users office apps, like outlook and word, SharePoint, Office 365 groups, et cetera.

Now, once the label gets published via the policy, users can use the label to protect their content and that's what this note here is telling us. So what we'll do here is we'll publish a label by clicking Publish Label. And then from here, we'll just have to provide some information. We'll start with choosing the sensitivity label that we want to publish. So basically we're telling Microsoft 365, hey, we're creating this policy, what label are we gonna publish with this policy?

So, we'll choose the personal label here once it comes up and we'll add it to the policy, we'll Next through here, and then here in this page here for publishing to users in groups, it's pretty self-explanatory. What we need to do is tell Microsoft 365 what users and groups we are going to publish this label to via this policy. The default here is all users although we could choose a user or group and select something from our list, but for this exercise we'll just include all users and groups. Well, Next it.

Now on this policy settings page, we have to choose whether or not we wanna have a default label, a mandatory label, or require users to justify actions on their end. If we select the dropdown here, we can select the personal label as the default label for our documents and email. So we'll go ahead and select that. And then what we can do here is check any of the boxes here that apply to our environment. This is where we can tell the policy whether or not users have to provide justification to remove this label or a lower classification label. We can configure the policy to require users to apply label to their email or documents, or we can provide users with a link to a custom help page.

For this exercise here, what we'll do, we'll tell the policy to ensure users apply labels to their email and documents. So we'll go ahead and Next it and then here we need to provide a name for our policy. We can also optionally provide a description as well. I am just going to call this PersonalPolicy. I'm not too worried about a description here, it's not mandatory, so we'll Next it to through. And then here we can review our settings and if we're happy with them, we can go ahead and Submit it. And we now have a sensitivity label policy created and what this will do is publish our personal label to all users and groups in our organization. So there you have it. That's how you create a label policy that's used to publish a label.

About the Author
Thomas Mitchell
Learning Paths

Tom is a 25+ year veteran of the IT industry, having worked in environments as large as 40k seats and as small as 50 seats. Throughout the course of a long an interesting career, he has built an in-depth skillset that spans numerous IT disciplines. Tom has designed and architected small, large, and global IT solutions.

In addition to the Cloud Platform and Infrastructure MCSE certification, Tom also carries several other Microsoft certifications. His ability to see things from a strategic perspective allows Tom to architect solutions that closely align with business needs.

In his spare time, Tom enjoys camping, fishing, and playing poker.