Microsoft 365 features that help users manage their subscriptions, account settings, and billing information.
Hi -Martin N-,
I tested by creating several labels. For some labels, I checked the box Use label to classify content as a "Record" and for some, left it unchecked.****The Delete label tab was disabled when labels were set to classify content as Record while for others, it was enabled.
Since you mentioned, you haven’t published the label and if **Use label to classify content as a "Record"**box is unchecked and still you are unable to delete the label, then try using PowerShell cmdlet Remove-ComplianceTag.
For detail information, please see Remove-ComplianceTag
Thanks,
Neha