Can you change label custom field type to free text field box without having to delete and recreate?
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No, there's no way to do that on Cloud
You can only do that sort of change on server/DC by hacking the database, and you can only do it for field types that are similar and contain the same data structures. Labels do not contain text as their content, so just changing it will land you with a text field with a pile of utter junk in it, unless you convert it. (Whereas you can convert short-text to long, or date to date/time, without any data manipulation)
Thank you very much for helping with my query
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