Information classification is used to separate information into different categories. Everything from legal cases to sensitive projects often includes different kinds of information. It could contain both public information meant to be spread/shared officially and more sensitive highly confidential information restricted to certain users.
However, a common business request is the ability to classify information based on a certain location such as Team sites or SharePoint sites. Today the classification/Sensitivity label of the site only control how information can be accessed and shared and doesn’t affect the sensitivity label of the files within the team.
Default label per SharePoint/Team site
What’s in roadmap and currently in private preview is that a default sensitivity label can be configured per site. A site with configured default sensitivity label will automatically apply this label to all documents created or uploaded to this site. The exception is documents that already have been manually or automatically classified with a sensitivity label.
Documents with another default label will be relabeled with the default label configured for the Team/SharePoint Site.
In this example two different files are uploaded to Confidential team for Project Beta.
· The excel file is already manually labeled as Public.
· The document is just created with a default label (Business).
Within 2 minutes Teams shows that the Excel file remains classified as Public while the document has been relabeled as Confidential \ Project Beta
When a new document (excel workbook in this example) is created from this site it is labeled by default as Confidential \ Project Beta
If you want to try this out, the product owner at Microsoft have written an article with guidelines