Hi Chira Diana ,
Welcome to Microsoft Q&A platform and thanks for posting your query here.
Yes, you can label existing files with two different labels. However, you need to make sure that the labels are compatible with each other. For example, if you have a more restricted label that prevents sharing outside the organization, you cannot apply another label that allows sharing outside the organization.
To label the most restricted files with PnP PowerShell, you can use the Set-PnPSensitivityLabel command. Here is an example:
Set-PnPSensitivityLabel -List "Restricted Documents" -Identity "Document1.docx" -Label "Confidential"
This command sets the "Confidential" label on the "Document1.docx" file in the "Restricted Documents" library.
To label the rest of the files using auto labeling in Purview, you can create a sensitivity label policy in the Microsoft 365 compliance center. Here are the high-level steps:
- Create a sensitivity label that meets your requirements.
- Create a label policy that applies the sensitivity label to the files in the document libraries. (You need multiple label policies only if users need different labels or different policy settings. Aim to have as few label policies as possible—it's not uncommon to have just one label policy for the organization.)
- Enable auto labeling for the label policy.
For more information on creating a sensitivity label policy, you can refer to these documents:
Create and configure sensitivity labels and their policies
Apply a sensitivity label to content automatically
Hope it helps. Thankyou