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Sensitivity labels in Microsoft 365 allow for classifying and protecting sensitive business content. To create a label, go to the compliance admin center, select sensitivity labels, and create a new label with a name, tooltip, and description. Enable encryption, assign permissions, set content expiration, and offline access preferences. Add email addresses or domains for access permissions. Choose preset or custom permissions, save, enable content marking, customize text appearance, and save again. Repeat for additional settings as needed.
