Hi, in my testing of this, I set my label as below,
Then I created a SPO Team site with this sensitivity label applied to it. I created a word doc and was able to share it to an external Gmail account (completely new test Gmail account).
However, when opening it, I was challenged to send a verification code to the Gmail account.
The code never arrives. Have tried resending it a number of times. I believe this is probably going to be the expected behaviour. What I might do is leave it a while and see if anything changes. Then I will add the Gmail account as a guest user and see if that changes anything.
