SharePoint: Applying or Changing a Sensitivity Label on your SharePoint Site

Summary

This article explains how to use sensitivity labels in SharePoint to control access and sharing settings for sites based on your collaboration and security requirements. You'll learn when labels are appropriate, how to apply them during site/team creation or to existing containers, and what automatic access controls and restrictions they enforce.

Note: SharePoint sites and Teams are connected. Every Microsoft Team has a connected SharePoint site that stores all the team's files, tabs, and content. When you change the sensitivity label on a SharePoint site, it automatically updates the label on the connected Microsoft Team, and vice versa. Changing the label in either location affects both the SharePoint site and its Microsoft Team. You only need to change the label in one place - the change will apply to both.
 

Context

Sensitivity labels for sites and teams are an access control tool designed to manage who can access your collaboration space and how content can be shared. They should be applied based on your collaboration and sharing requirements; not as a general permission management tool.

Important distinctions:

  • For data protection needs (HIPAA, FERPA, confidential information) → Use sensitivity labels and consult with the ET&S SharePoint team before applying a label. We can help ensure proper configuration and compliance. Please follow our guidelines here: SharePoint: Requesting/Managing Sites for FERPA or HIPAA Data.
     
  • For general access control (limiting by campus or group) → See SharePoint: Sharing a Site with your Campus or All of USNH
     
  • For protecting individual files (encryption, watermarks) → Users must apply sensitivity labels directly to files. Site Labels protect the site/team container, not individual files. When you apply a sensitivity label to a SharePoint site or Microsoft Team, the label controls access to the container itself - such as who can join, whether guests can access it, and device restrictions. The label does not automatically apply to files stored within the site/team. Individual files will not have encryption, watermarks, or other content-level protections unless users apply sensitivity labels directly to those files.
     

See what types of sensitivity labels are available by viewing this article: Office 365: Applying Sensitivity Labels


When and Why to Use a Sensitivity Label

Apply a sensitivity label when your site or team needs specific access controls or sharing restrictions. Labels should be chosen based on your collaboration requirements, not applied arbitrarily.

Sensitivity labels are not intended for managing general group permissions or limiting access by campus or department. For guidance on controlling site access based on campus or group membership, see our KB article: See SharePoint: Sharing a Site with your Campus or All of USNH 

What sensitivity labels can do:

  • Control external access – Restrict or prevent guest sharing and external user access to the site/team
  • Set privacy levels – Configure whether the site/team is Private or USNH Public/Org-wide at creation
  • Manage device access – Limit access from unmanaged devices (e.g., web-only viewing, no downloads)
  • Support governance – Apply consistent classification and make the access level visible to all users

Apply a label if your site/team:

  • Needs to restrict who outside USNH can access the collaboration space
  • Should prevent access or downloads from unmanaged devices
  • Requires specific privacy settings (Private vs. Public/Org-wide)
  • Benefits from clear classification to support your governance efforts

If none of these apply, a label may not be necessary.

Special consideration for HIPAA and FERPA data: If your site or team will contain HIPAA or FERPA-protected data, please contact us before applying a label. We can help ensure proper configuration and compliance. Request a consultation here.

Container labels vs. content labels: Sensitivity labels applied to sites or teams control container access and settings only. They do not automatically apply to files within the site/team. Individual files will not have encryption, watermarks, or other content-level protections unless users apply sensitivity labels directly to those files. The SharePoint site sensitivity label manages who can access the space, not how files are protected.

 

How-To
Task: To apply or change a sensitivity label on your SharePoint site or Microsoft Team.

 

Instructions

When creating a new SharePoint site:

  1. Start creating a new site (Team site or Communication site) in SharePoint.
  2. As you progress through the setup steps, you will be presented with a Sensitivity dropdown (typically in the Advanced settings section for SharePoint sites).
  3. Select the appropriate label based on your access and sharing needs (e.g., Sensitive, Protected, Restricted).
  4. Complete the creation process - the label will be applied automatically.
  5. The label name will appear in the site details once created.
     

To change the label on an existing site: (You must be a site Owner to complete these actions)

Note: Teams and SharePoint sites are connected. Every Microsoft Team has a connected SharePoint site that stores all the team's files, tabs, and content. When you change the sensitivity label on a Team, it automatically updates the label on the connected SharePoint site, and vice versa. Changing the label in either location affects both the Team and its SharePoint site. You only need to change the label in one place - the change will apply to both.

From within a SharePoint site:

  1. Open the site and click the Settings gear icon.
  2. Select Site information (or use the details pane/Policies tab).
  3. Choose a new label from the Sensitivity dropdown.
  4. Click Save.

From within Microsoft Teams:

  1. Open the team and select Manage team or Edit team.
  2. Locate the Sensitivity dropdown.
  3. Select the new label and save.

Changes take effect immediately, and site/team settings are updated according to the new label's policies. 

 

Further Readings

Outlook: Applying Sensitivity Labels

Teams: Applying a Sensitivity Label to your Microsoft Team

Office 365: Applying Sensitivity Labels

  

Need additional help?

For assistance concerning site creation, content sharing, file synchronization, or other common SharePoint, OneDrive, Teams, or Office app activities, we recommend our Microsoft 365 Learning sites:

Learn more about the great tools our Microsoft 365 Learning sites offer!

Visit the Technology Help Desk Support page to locate your local campus contact information or to submit an online technology support request.  For password issues you must call or visit the Help Desk in person.  

Print Article