Demonstrate to students that they are competent. Seek educational help when you need it. Seek a clinical approach for fundamental problems. Give students the credit for learning to read. Diagnostic labels are appropriate when they are useful.
Every situation is different.
I cannot guess the answer for you. It may suggest a cookie-cutter solution. Some students may take on this label as an identity, or a dead end. These are not the useful attitudes that lead to progress. No dead ends should be assumed in advance.