Although they don't directly affect the performance of your GMB listing, labels are a useful feature for many marketers and business owners. They simply allow you to organize your records within your account; it's a handy tool when managing multiple locations on a single dashboard. Using them makes it easy to find a specific location in GMB.
They are often used to group listings by region or by country if you are working with an international company that has stores in multiple territories. For example, for the United States, you can add the labels “East Coast” and “West Coast” to group your files.
You can assign up to 10 labels per establishment, with up to 50 characters. You will find the option to add labels in the "Advanced Information" section of the "Info" tab.