My idea was:

1) "green labels" contains an inner list, so it should get 3 spaces (same if it contained an inner code block).

2) It looks nicer and might be more potable if all elements of the list have the same spacing, that is:

    -   light orange
    -   green labels
        - inner list

Instead of:

    - light orange
    -   green labels
        - inner list

Both 1) and 2) are hard to decide on points (lists are super underspecified) and if the community prefers another style we can discuss it.