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Is there a way to use Labels and Policies to Move documents that were not modified in 7 years to a Library on a different site? I see the ability to set documents as records or delete them after a time period, but not archive them. Alternatively is there another way to accomplish this, in Sharepoint online?

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I think your requirement is achievable with Microsoft Flow.

Trigger the Flow on a Date column and use “Copy file” and “Delete file” actions to move the documents to the target location.

Here’s an article with detailed steps for a Flow for your reference.

A MODERN “TRANSFER TO ANOTHER LOCATION” IN OFFICE 365.

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