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Welcome to the community. "Labels" field (out of the box) is a special system default field from the application. When this field is populated by users, the new value is automatically added to the option list at the system level. There is no field configuration UI for this out of the box field.
However, you can create custom field with "Labels" data type where you can setup the field context to be applied to specific project (meaning that the custom field is populated, then the value added is only available for the specific project only).
Again, you cannot manage the options of a "Labels" field like a select list dropdown field etc.
Hope this helps.
Best, Joseph Chung Yin
Jira/JSM Functional Lead, Global Technology Applications Team
The "Labels" field option listing is based on what users key in against the issue. It is not something that you can manage/configured.
Example - Someone key in "xyz" in the field and save the change, then "xyz" will now become an valid option for the field. To remove the field, one will need to identify the issues with this value and remove it from the issue itself.
Again, this special system field cannot be managed like a regular select list data typed custom fields.