A Practical Guide to Sensitivity Labels

Sensitivity labels are one way that data classification can be applied to files and documents. Aside from labels built into Microsoft 365, you can define custom labels and apply them to documents manually or automatically via rules. In this course, we create a sensitivity label and apply it to a document and then change that document's label. Labels are embedded in documents allowing classification to follow a document from one domain or file system to another. We look at how label embedding is achieved. Finally, we see how to integrate MS365 sensitivity label functionality with Azure AD groups and sites.

Learning Objectives

  • Create a sensitivity label
  • Use a sensitivity label
  • See how sensitivity labels are implemented within an MS365 Office document
  • Learn how to integrate sensitivity label functionality with Azure AD groups and sites

Intended Audience

  • Students who want to take a practical and in-depth look at sensitivity labels, from their creation, application, and how they are implemented within an office document



Hi, and welcome to this Practical Guide to Sensitivity Labels course. My Name is Hallam Webber, and I'm an Azure instructor with 25-plus years of experience in the IT industry, and since 2014 I've focused on Microsoft Azure cloud technologies.

As the name implies, this course extends the theory explained in the Introduction to Sensitivity Labels course by creating a sensitivity label and seeing that label applied to a document. This course also looks at how sensitivity labels are implemented on a computer, with and without the Azure Information Protection client. We see how sensitivity labels are embedded in documents and how sensitivity labels interact with Azure Active Directory groups.

This course is intended for students who want to learn about the technical aspects of labelling documents, see the process for creating a custom sensitivity label, and how sensitivity labels are attached to files.

To get the most from this course you should have taken the Introduction to Sensitivity labels course and some familiarity with user roles and groups would be helpful. In addition, one lecture in this course makes extensive use of the PowerShell command window.

When I created this course, all information was current. If you have any feedback, positive or negative, or if you notice anything that needs to be updated or corrected, please reach out to us at

Without further ado, let's take a deep dive into sensitivity labels.

About the Author
Learning Paths

Hallam is a software architect with over 20 years experience across a wide range of industries. He began his software career as a  Delphi/Interbase disciple but changed his allegiance to Microsoft with its deep and broad ecosystem. While Hallam has designed and crafted custom software utilizing web, mobile and desktop technologies, good quality reliable data is the key to a successful solution. The challenge of quickly turning data into useful information for digestion by humans and machines has led Hallam to specialize in database design and process automation. Showing customers how leverage new technology to change and improve their business processes is one of the key drivers keeping Hallam coming back to the keyboard.