For me I think I’m going to take an approach where Categories are the main theme of the entity, meanwhile labels are going to be everything related to it. For example a security automation to give you an alert if you’ve left windows open at home when leaving the house would be under the security category, however It would also include a notification label.
Or if you have a toggle helper to turn automated lighting on or off, that could be under the system category… because it’s how your system manages the lighting however obviously it will have a lighting label or vice versa.
I’m interested to know how everyone else is handling it? Also is there a way to hide labels in the entities page because with them and without any filter, it looks quite chaotic.