When you switch to the new Outlook for Windows, you may notice that sensitivity labels appear differently than in classic Outlook. These labels help you classify and protect email content, but their settings are now managed in a different place. This article explains where to find the sensitivity label settings in the new Outlook and what practical limits apply when using them. You will learn how to configure labels, understand when certain options are unavailable, and avoid common mistakes.
Key Takeaways: Sensitivity Labels in New Outlook
- Settings > Mail > Sensitivity Labels: The only location in new Outlook to view or change label behavior for outgoing messages.
- Microsoft 365 Compliance Center (purview.compliance.microsoft.com): Where administrators create and edit label policies that apply to all users.
- No per-folder or per-account label rules: New Outlook does not support automatic label assignment based on folder or sender, only manual or policy-based assignment.
Why Sensitivity Labels Settings Moved in New Outlook
Sensitivity labels in new Outlook are part of Microsoft 365 Information Protection. The new Outlook is built on a web-based platform, not the classic MAPI infrastructure. This change means that many settings that were once in Outlook options are now managed centrally through the Microsoft 365 Compliance Center. The new Outlook client itself only exposes a limited set of user-facing controls for sensitivity labels.
The root cause of confusion is that users expect to find label configuration in File > Options or Account Settings. In new Outlook, those menus do not contain sensitivity label settings. Instead, the client reads label policies from the organization’s tenant and applies them automatically or on demand. Users can only toggle a few display preferences, such as whether the label bar appears in the compose window.
How the New Outlook Handles Labels
New Outlook uses the Microsoft 365 Information Protection SDK to apply labels. When you compose a message, the client queries the tenant for applicable label policies. If your organization has published a default label, it is applied automatically. You can change the label manually if the policy allows it. The label metadata is embedded in the message headers and encrypted if the label includes protection settings.
Where to Find Sensitivity Label Settings in New Outlook
Follow these steps to locate the sensitivity label settings in the new Outlook for Windows.
- Open Outlook Settings
Click the Settings gear icon in the upper-right corner of the Outlook window. A settings pane opens on the right side. - Navigate to Mail
In the settings pane, click Mail in the left navigation list. This section contains all email composition and formatting options. - Select Sensitivity Labels
Scroll down the Mail settings list and click Sensitivity Labels. This page shows the label bar toggle and a link to the Compliance Center. - Adjust the Label Bar Setting
Toggle Show the sensitivity label bar when composing a message on or off. When on, a colored bar appears at the top of the compose window showing the current label. When off, you can still apply labels from the ribbon or the three-dot menu. - Access Advanced Label Policies
Click the Go to the Microsoft 365 Compliance Center link. This opens your default browser at the Compliance Center, where administrators can create, edit, and publish label policies.
These steps cover all user-facing settings for sensitivity labels in new Outlook. There is no additional option for default label, mandatory labeling, or justification text. Those settings are controlled exclusively by the administrator in the Compliance Center.
Practical Limits of Sensitivity Labels in New Outlook
New Outlook imposes several practical limits that differ from classic Outlook or from what users might expect based on other Microsoft 365 apps.
No Per-Folder or Per-Sender Label Rules
In classic Outlook, you could use rules or add-ins to assign a sensitivity label automatically when sending to a specific recipient or from a specific folder. New Outlook does not support client-side rules for sensitivity labels. All automatic labeling must be configured through the Compliance Center using auto-labeling policies, which scan messages after they are sent or while being composed. This means you cannot create a rule that says “always apply Confidential to emails sent to legal@company.com” from within Outlook.
Label Bar Availability in Read and Compose Views
The sensitivity label bar appears only in the compose window. It does not appear in the reading pane or when viewing a sent message in the Sent Items folder. To see the label applied to a received message, look at the label badge next to the subject line in the message list. If the label is not visible, the message may not have a label or your mailbox view may be collapsed.
Limited Label Customization in the Client
You cannot change the color, tooltip, or order of labels in new Outlook. These properties are defined in the Compliance Center and pushed to all clients. If you want a label to appear first in the list, your administrator must adjust the label priority in the Compliance Center. The client simply displays labels in the order defined by the policy.
No Label History or Audit Log in Outlook
New Outlook does not provide a built-in log of label changes. If you need to see when a label was applied or changed, you must use the Microsoft 365 Audit Log in the Compliance Center. This log records label assignments and changes for compliance and security investigations.
Comparison: New Outlook vs Classic Outlook Sensitivity Label Settings
| Item | New Outlook | Classic Outlook |
|---|---|---|
| Settings location | Settings > Mail > Sensitivity Labels | File > Options > Trust Center > Trust Center Settings > Privacy Options |
| Label bar toggle | Available in Settings | Not available; label bar is always on when labels are published |
| Per-folder or per-sender rules | Not supported | Supported via Outlook rules and third-party add-ins |
| Default label assignment | Controlled by policy only | Controlled by policy or local registry |
| Label customization (color, order) | Compliance Center only | Compliance Center only |
| Audit log access | Compliance Center only | Compliance Center only |
What to Do If Labels Do Not Appear in New Outlook
Sensitivity label bar is missing in compose
If you have enabled the label bar in Settings but it does not show when composing a new message, close Outlook and restart it. If the issue persists, verify that your organization has published at least one sensitivity label policy to your user group. Without a published policy, the label bar will not appear even if the toggle is on. Contact your Microsoft 365 administrator to confirm that your account is included in a label policy.
Labels appear but cannot be changed
If you see a label but the dropdown to change it is grayed out, your organization has likely set a mandatory label policy or a default label that cannot be overridden. In the Compliance Center, administrators can set a label as mandatory or configure “Justification on change” requirements. New Outlook respects these settings and will not allow you to remove or lower the label if the policy forbids it.
Labels applied in classic Outlook do not sync to new Outlook
Labels applied to items in classic Outlook are stored in the item’s metadata. When you open the same mailbox in new Outlook, the labels should appear on existing items. If they do not, the item may have been created with an older label format that the new client does not recognize. Reapply the label using the new Outlook client to update the metadata to the current format.
Conclusion
You can now locate the sensitivity label settings in new Outlook under Settings > Mail > Sensitivity Labels. The only user-facing option there is the label bar toggle. All other label behavior is controlled by your administrator through the Microsoft 365 Compliance Center. If you need to create or modify label policies, use the Go to the Microsoft 365 Compliance Center link in the same settings page. For advanced audit or auto-labeling needs, work with your compliance team to configure policies that match your organization’s requirements. Remember that per-folder or per-sender label rules are not available in new Outlook, so plan your label strategy accordingly.