Labels not working

When I right-click a folder, then choose Labels -> Idea in previous books it would mark the folder in yellow. However, in my most recent book it doesn’t do anything.

Is there a setting or something I need to tweak so that it makes it yellow?

You can choose per project where to display the label colour, so likely you want to set either View > Use Label Color In > Binder or … > Icons.

Awesome thanks!