Changes to the labels of selected features are applied to the entire feature layer

Description

A label is a piece of text on the map that is dynamically placed and whose text string is derived from one or more feature attributes. When applying or updating the labels through the layer properties of selected features in a layer, the changes are applied to the entire layer instead of the selected features. This issue also occurs to a layer created from the selected features.

Cause

This issue occurs when changing the label of a selection in a layer, and is a known limitation.

Solution or Workaround

There are two possible workaround for this issue. Use one of the following methods

Instead of creating a new layer with the selected features using the Create Layer from Selected Features function, use the Make Feature Layer tool.

1. In ArcMap, navigate to Search. Search for the Make Feature Layer tool.
2. Open the Make Feature Layer tool.
3. Create a feature layer using the query builder  within the tool. For more information, refer to ArcGIS Help: Write a query in the query builder.
4. Apply the changes on the label of the newly created feature layer.

If the new layer has already been created with the Create Layer from Selected Features function, use the Export Data function to export the data to a shapefile or feature class.

1. In ArcMap, select the features using the Select Features tool.
2. Right-click the layer in Table Of Contents > Selection > Create Layer from Selected Features.
3. Right-click the new layer > Data > Export Data.
4. Apply the changes on the label of the newly created features.