I'm new to SharePoint online and learning how to setup the sensitivity labels. I followed the MS guide on creating the labels and publishing them with a label policy. Once I did that, my sensitivity labels are only available through the office desktop application but not in office online.

I've seen other clients where their sensitivity label is available in both online and desktop apps. I feel like there is a setting or something that is causing my labels to not appear in office online. Google search did not provide any help. Any help is appreciated!

This is what I see when I open a word document in office online when applying a label via desktop app:

Word online error

1 Answer 1


I ended up working with Microsoft Support and concluded that if you choose the encryption setting "Let Users Assign Permissions when they apply the label" option, this label does not work in Office online (as of today anyway). These labels can only work in Office desktop app.

Microsoft Sensitivity Label Limitations

SharePoint and OneDrive can't process encrypted files when the label that applied the encryption has any of the following configurations for encryption: Let users assign permissions when they apply the label and the checkbox In Word, PowerPoint, and Excel, prompt users to specify permissions is selected. This setting is sometimes referred to as "user-defined permissions". User access to content expires is set to a value other than Never. Double Key Encryption is selected. For labels with any of these encryption configurations, the labels aren't displayed to users in Office for the web. Additionally, the new capabilities can't be used with labeled documents that already have these encryption settings. For example, these documents won't be returned in search results, even if they are updated.

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