Retention labels can be deleted from Taxonomy App, however this does not affect the retention labels in the Compliance Center. To delete the retention labels from the compliance center you need to visit the page https://compliance.microsoft.com/recordsmanagement?viewid=fileplan.
Note: When a retention label is deleted, it is removed from all the taxonomy items where it is being used and removed from the system. If you are not sure about the retention label being used elsewhere, it is recommended to use Clear the retention label.
1. Navigate to the taxonomy details page and click icon for the taxonomy item for which you want to delete the retention label.
A dropdown list is displayed.
2. Click Edit.
The taxonomy item is enabled for editing.
3. Click M365 Retention Label tab.
The M365 Retention Label is displayed.
4. Click icon next to the Label Name.
A Confirmation dialog is displayed.
5. Click Yes.
The retention label is deleted from the system.
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