Across your organization, you probably have different types of content that require different security requirements to comply with industry regulations and internal policies.

Using Microsoft Information protection labels you can now apply consistent security and access policies to SharePoint Sites based on the sensitivity of the site. You can create sensitivity labels and associate them with policies in the new Microsoft 365 Security and Compliance Center. You can then apply these labels to files, emails, groups, Sites and Teams to automatically enforce consistent policies across your content.

Reference source: https://techcommunity.microsoft.com/t5/Microsoft-SharePoint-Blog/What-s-new-and-what-s-coming-w-SharePoint-amp-OneDrive-Security/ba-p/272172