the current Confluence documentation does not list an ability to watch content by label, however it does suggest the following:
Using labels and RSS feeds as an alternative to watches
You can use the RSS feed builder to track updates to labelled pages and comments on those pages. Here is an idea for customising your RSS feed by using your own personal label(s). This is useful if you want to track updates to specific pages or blog posts, and you do not want to deal with emails. You can use this method as an alternative to watching pages.
From here, use the RSS Macro to display the feed content on your page.
More information on watching content can be found at: Confluence Documentation - Watching Content
Information on working with RSS at: Confluence Documentation - Working with RSS
Hope that helps your query!
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