Data classification for your Microsoft 365 Enterprise test environment

With the instructions in this article, you configure data classification using Office 365 retention labels in your Microsoft 365 Enterprise test environment.

Test Lab Guides for the Microsoft cloud

Tip

Click here for a visual map to all the articles in the Microsoft 365 Enterprise Test Lab Guide stack.

Phase 1: Build out your Microsoft 365 Enterprise test environment

If you just want to configure Office 365 retention labels in a lightweight way with the minimum requirements, follow the instructions in Lightweight base configuration.

If you want to configure Office 365 retention labels in a simulated enterprise, follow the instructions in Pass-through authentication.

Note

Testing Office 365 retention labels does not require the simulated enterprise test environment, which includes a simulated intranet connected to the Internet and directory synchronization for a Active Directory Domain Services (AD DS) forest. It is provided here as an option so that you can test automated licensing and group membership and experiment with it in an environment that represents a typical organization.

Phase 2: Create Office 365 retention labels

In this phase, you create the retention labels for the different levels of retention for SharePoint Online documents folders.

  1. Sign in to the Microsoft 365 compliance portal with your global admin account.

  2. From the Home - Microsoft 365 compliance tab of your browser, click Classifications > Labels.

  3. Click Retention labels > Create a label.

  4. On the Name your label pane, type Internal Public in Name your label, and then click Next.

  5. On the File plan descriptors pane, click Next.

  6. On the Label settings pane, if needed, set Retention to On, and then click Next.

  7. On the Review your settings pane, click Create the label.

  8. Repeat steps 3-7 for additional labels with these names:

  • Private

  • Sensitive

  • Highly Confidential

  1. From the Home > Labels pane, click Publish labels.

  2. On the Choose labels to publish pane, click Choose labels to publish.

  3. On the Choose labels pane, click Add and select all four labels.

  4. Click Done.

  5. On the Choose labels to publish pane, click Next.

  6. On the Choose locations pane, click Next.

  7. On the Name your policy pane, type Example organization in Name, and then click Next.

  8. On the Review your settings pane, click Publish labels, and then click Close.

Note that it might take a few minutes for the retention labels to be published.

Phase 3: Apply Office 365 retention labels to documents

In this phase, you discover the default retention label behavior for files in the Documents folder of a SharePoint Online site and manually change the retention label of a document.

First, create a sensitive-level SharePoint Online team site:

  1. Using a browser on your local computer, sign in to the Office 365 portal using your global administrator account.

  2. In the list of tiles, click SharePoint.

  3. On the new SharePoint tab in your browser, click Create site.

  4. On the Create a site page, click Team site.

  5. In Team site name, type SensitiveFiles.

  6. In Team site description, type SharePoint site for sensitive files.

  7. In Privacy settings, select Private - only members can access this site, and then click Next.

  8. On the Who do you want to add? pane, click Finish.

Next, configure the Documents folder of the SensitiveFiles team site for the Sensitive retention label.

  1. In the SensitiveFiles tab of your browser, click Documents.

  2. Click the settings icon, and then click Library settings.

  3. Under Permissions and Management, click Apply label to items in this library.

  4. In Settings-Apply Label, select Sensitive in the drop-down box, and then click Save.

Next, create a new document in the SensitiveFiles site and change its retention label.

  1. In the documents folder, click New > Word document.

  2. Type some text in the blank document. Wait for the text to be saved.

  3. In the menu bar, click Shared Documents.

  4. Click the Word icon next to the Document.docx file name.

  5. In the right-hand pane, in the Properties section, under Apply retention label, note that the document has had the Sensitive label automatically applied.

  6. Click Edit all.

  7. In the Document.docx pane, under Apply label, select the Highly Confidential label, and then click Save.

See the Configure classification for your environment step in the Information protection phase for information and links to how to deploy Office 365 retention labels in production.

Next step

Explore additional information protection features and capabilities in your test environment.

See also

Microsoft 365 Enterprise Test Lab Guides

Deploy Microsoft 365 Enterprise

Microsoft 365 Enterprise documentation