To apply sensitivity labels, users must sign in with their Microsoft 365 work or school account. These labels, part of Microsoft Purview, are designed to help organizations manage the sensitivity of their data consistently across the digital environment.
Consider an Excel document named Financial Summary containing sensitive fiscal data intended for internal review. Applying the Confidential sensitivity label encrypts the document and sets access permissions for specific employees, protecting sensitive financial information even outside the organization’s immediate digital boundaries.

Understand sensitivity labels
What sensitivity labels are
Sensitivity labels are like customizable stamps for your organization’s content. They are:
- Customizable: Tailored to your organization’s needs, categorizing content into levels like Personal, Public, General, Confidential, and Highly Confidential.
- Clear text: Stored in clear text, making them readable by non-Microsoft apps for more protective actions.
- Persistent: Remain with content wherever it’s saved or stored, enforcing your organization’s policies.
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