Hi Oyewole Aishat,
Thank you for contacting Microsoft Community.
In Microsoft Purview Information Protection, it is possible to configure default labeling behavior for documents and emails using auto-labeling policies. However, the behavior you're describing, applying a default label unless a more specific condition is met, requires a combination of default labeling and auto-labeling rules.
Here is a recommended configuration for your scenario:
1. Set a Default Sensitivity Label
To apply a default label (e.g., “Basic”) to all new documents and emails:
- Sign in to https://purview.microsoft.com/
- Navigate to Information Protection > Label Policies
- Edit or create a label policy
- Under Default label for documents and emails, select your “Basic” label
This ensures that any new content created by users will automatically be labeled unless another label is applied manually or via auto-labeling.
2. Configure Auto-Labeling for Specific Data
To override the default label when specific conditions are met (e.g., Protected B data):
- Go to Information Protection > Auto-labeling
- Create a new auto-labeling policy
- Define conditions using Sensitive Information Types (SITs) or keywords
- Assign the “Protected B” label to matched content
This policy will automatically apply the more restrictive label when the content meets the defined criteria.
3. Label Priority
Ensure that your labels are ordered by priority so that “Protected B” has a higher priority than “Basic.” This ensures correct label application when multiple conditions are met.
You may also find additional context in this related article: Create and publish sensitivity labels | Microsoft Learn
*Additional Notes
- These settings are available only in Microsoft 365 E5, Microsoft 365 E5 Compliance, or equivalent licensing.
- If your users do not see the default label applied, verify that the label policy is published to their accounts and that the apps (Word, Outlook, etc.) are updated and signed in with their work accounts.
- For SharePoint and OneDrive, ensure that sensitivity labels are enabled for those services. This is a one-time setup step in the compliance portal
I hope this information helps you move forward with your labeling strategy. Please feel free to reach out if you have any updates or further questions. We're here to support you.
Best regards,
Demi-N - MSFT | Microsoft Community Support Specialist.