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Quick Answer

Look for the Sensitivity button (a lock icon) on the Home tab of Word, Excel, PowerPoint, or Outlook. Click it and select the label that matches the data in your file, such as 'Public', 'Internal', or 'Highly Confidential'.

How to Use Sensitivity Labels in Microsoft 365 ​

Applies to: Outlook, Word, Excel, PowerPoint
Article Type: How-To
Last Updated: 2026-07-10

Summary ​

When you open a new email in Outlook or create a new Word document, you might notice a new button that forces you to choose a "Sensitivity Label" (like Public, General, or Confidential). These labels don't add text to the document—they apply real, underlying security rules to protect the data. This guide explains how to choose the right label and what happens when you do.

Prerequisites ​

  • You must be using Microsoft 365 apps (Outlook, Word, Excel, PowerPoint)

Instructions ​

1. Where to Find Sensitivity Labels ​

You can apply a label to an email while you are writing it, or to a document while you are editing it.

  • In Outlook (Desktop): Click the Message tab at the top. Look for the Sensitivity button (it usually has an icon of a lock or a tag).
  • In Word/Excel/PowerPoint: Look on the Home tab for the Sensitivity button on the far right side of the ribbon.
  • Note: Many companies now force you to choose a label before you are allowed to click Send or Save.

2. Choosing the Right Label ​

Your company's IT and Legal departments define the exact labels, but they generally follow this structure:

  • Public: Information that is already on your company's public website. (e.g., A press release). Security applied: None.
  • General / Internal: Standard day-to-day business data that isn't particularly sensitive but shouldn't be posted on Twitter. (e.g., A cafeteria menu or a team meeting agenda). Security applied: Often adds a watermark or footer.
  • Confidential: Sensitive business data. (e.g., Unreleased product designs, internal financial reports). Security applied: Usually encrypts the file and prevents it from being sent to external email addresses like @gmail.com.
  • Highly Confidential / Restricted: The most sensitive data in the company. (e.g., Social Security Numbers, exact employee salaries, merger and acquisition plans). Security applied: Strictly limits exactly who can open the file, disables the "Print" button, and disables "Copy/Paste."

3. What Happens When You Label a Document? ​

When you apply a label, the security travels with the file, no matter where it goes.

If you label an Excel file as Highly Confidential and a coworker accidentally emails it to a competitor, the competitor will not be able to open the file. When they double-click it, Microsoft will check their email address, see they are not authorized, and block access to the data.

4. Changing a Label ​

If you realize a document was labeled incorrectly, you can usually change it.

  1. Click the Sensitivity button again.
  2. Select the new label.
  3. If you are downgrading a label (e.g., moving it from Confidential down to Public), a pop-up window will appear asking you to type a justification for why you are removing the security. This justification is logged for compliance audits.

Troubleshooting ​

Symptom / ErrorPotential CauseSolution
"You don't have permission to open this file"Label restrictionThe creator of the file applied a strict label that does not include your department. Ask them to change it
Cannot send an email to a clientLabeled "Internal Only"If you label an email as Internal Only, Outlook will physically block it from being sent to an external client
The Print button is grayed outHighly ConfidentialThis is an intentional security feature. You cannot print highly restricted documents