The latest update for sensitivity labels allows them to control the sharing capability of SharePoint Online sites. It’s a powerful example of policy-based management in action and demonstrates just how useful sensitivity labels will be as Microsoft steadily builds out the set of controls available through labels.
The container management settings of sensitivity labels can now manage the external sharing capability of SharePoint Online team sites. The same settings as available in the SharePoint admin center or PowerShell can be applied through a label. Caching means that new settings in a label might not be picked up by SharePoint Online for up to 24 hours.