Dashboard labels allow Council and HQ users to categorize groups/chapters linked to their dashboard.
Chapters CANNOT see the labels applied to them by a Council or HQ Dashboard. They are only visible by the dashboard user.
Here are some additional resources
What are labels?
How to apply a label to a group/chapter
What are linked groups?
How to link a group/chapter to your dashboard
Summary
Dashboard labels allow Council and HQ users to categorize groups/chapters linked to their dashboard. Any label applied by a dashboard user (HQ or Council) CANNOT be viewed by chapters ONLY those dashboard users.