I want to know is there any way we can migrate data of "Environment" custom field of type label to "Environment" system field , since we want to delete the duplicate "Environment" custom field and making sure no data of client is lost.
Not easily - the operation is either a simple "copy" from one field to another, or in the more painful case (where both fields have data you want to keep), it's a merge.
I would be strongly tempted to script this and keep it simple - write a short script-runner chunk of code that would grab the content of the custom field and poke it in at the end of the existing system-environment field. But I don't know if that's suitable for you (if you've only got one or two merges to do, then that gets your data together and you can ask your humans to tidy it, but if you have hundreds, it might be the wrong approach)
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