Hello @spookidiga!
Both labels and tags are used to improve users' navigation between posts of a similar type. You can write anything in the tag box when posting. However, you can only select labels from the list provided, for example, in playlist exchange.
Hope this helps clear things up!
Hey there you, Yeah, you! 😁 Welcome - we're glad you joined the Spotify Community! While you here, let's have a fun game…