Hi,
Does anyone know how I can use the Custom Status Label as either markdown or some other format so that I can add it to an automation rule which updates the issue description.

I think on Confluence you can use {status} but doesn't work on Jira Software (Cloud).
We have the option to add the panels but can't seem to find anything for status labels.
h1. Checklist
{status:colour=Green|title=On track|subtle=true}
{panel:bgColor=#ffebe6}
This error panel
h2. heading 2
h3. heading 3
* List 1 {status:colour=Green|title=On track|subtle=true}
* List 2 {status:colour=Red|title=On track|subtle=true}
{panel}
If it does not exist, I will submit a suggestion to add.