diff --git a/packages/api/src/repository/label.ts b/packages/api/src/repository/label.ts
index 9105f96eb..baaac24bb 100644
--- a/packages/api/src/repository/label.ts
+++ b/packages/api/src/repository/label.ts
@@ -82,7 +82,8 @@ export const labelRepository = appDataSource.getRepository(Label).extend({
   },
 
   deleteById(id: string) {
-    return this.delete({ id, internal: false })
+    // internal labels can be deleted but it will be recreated when next feed/newsletter saved
+    return this.delete({ id })
   },
 
   updateLabel(id: string, label: QueryDeepPartialEntity<Label>) {
diff --git a/packages/api/src/resolvers/labels/index.ts b/packages/api/src/resolvers/labels/index.ts
index 2762865cb..1da2f3053 100644
--- a/packages/api/src/resolvers/labels/index.ts
+++ b/packages/api/src/resolvers/labels/index.ts
@@ -89,30 +89,30 @@ export const createLabelResolver = authorized<
   CreateLabelSuccess,
   CreateLabelError,
   MutationCreateLabelArgs
->(async (_, { input }, { authTrx, log, uid }) => {
-  try {
-    const label = await authTrx(async (tx) => {
-      return tx.withRepository(labelRepository).createLabel(input, uid)
-    })
-
-    analytics.capture({
-      distinctId: uid,
-      event: 'label_created',
-      properties: {
-        ...input,
-        env: env.server.apiEnv,
-      },
-    })
-
+>(async (_, { input }, { authTrx, uid }) => {
+  const existingLabel = await labelRepository.findByName(input.name)
+  if (existingLabel) {
     return {
-      label,
-    }
-  } catch (error) {
-    log.error('createLabelResolver', error)
-    return {
-      errorCodes: [CreateLabelErrorCode.BadRequest],
+      errorCodes: [CreateLabelErrorCode.LabelAlreadyExists],
     }
   }
+
+  const label = await authTrx(async (tx) =>
+    tx.withRepository(labelRepository).createLabel(input, uid)
+  )
+
+  analytics.capture({
+    distinctId: uid,
+    event: 'label_created',
+    properties: {
+      ...input,
+      env: env.server.apiEnv,
+    },
+  })
+
+  return {
+    label,
+  }
 })
 
 export const deleteLabelResolver = authorized<
diff --git a/packages/api/src/services/labels.ts b/packages/api/src/services/labels.ts
index dac0a3c94..21b66fa4c 100644
--- a/packages/api/src/services/labels.ts
+++ b/packages/api/src/services/labels.ts
@@ -41,21 +41,18 @@ export const findOrCreateLabels = async (
   labels: CreateLabelInput[],
   userId: string
 ): Promise<Label[]> => {
-  // create labels if not exist
-  await authTrx(
-    async (tx) =>
-      tx.withRepository(labelRepository).createLabels(labels, userId),
-    undefined,
-    userId
-  )
-
-  // find labels
   return authTrx(
-    async (tx) =>
-      tx.withRepository(labelRepository).findByNames(
-        labels.map((l) => l.name),
-        userId
-      ),
+    async (tx) => {
+      const repo = tx.withRepository(labelRepository)
+      // create labels if not exist
+      await repo.createLabels(labels, userId)
+
+      // find labels by names
+      return repo.findBy({
+        name: In(labels.map((l) => l.name)),
+        user: { id: userId },
+      })
+    },
     undefined,
     userId
   )
@@ -151,6 +148,7 @@ export const saveLabelsInLibraryItem = async (
       {
         id: libraryItemId,
         labels: labels.map((l) => deepDelete(l, columnsToDelete)),
+        labelNames: labels.map((l) => l.name),
       },
       userId
     )
diff --git a/packages/api/test/resolvers/labels.test.ts b/packages/api/test/resolvers/labels.test.ts
index 22f8cdf4c..8d1175c78 100644
--- a/packages/api/test/resolvers/labels.test.ts
+++ b/packages/api/test/resolvers/labels.test.ts
@@ -35,7 +35,7 @@ describe('Labels API', () => {
     const res = await request
       .post('/local/debug/fake-user-login')
       .send({ fakeEmail: user.email })
-    authToken = res.body.authToken
+    authToken = res.body.authToken as string
   })
 
   after(async () => {
@@ -109,18 +109,9 @@ describe('Labels API', () => {
   })
 
   describe('Create label', () => {
-    let query: string
-    let name: string
-
-    beforeEach(() => {
-      query = `
-        mutation {
-          createLabel(
-            input: {
-              color: "#ffffff"
-              name: "${name}"
-            }
-          ) {
+    const query = `
+        mutation CreateLabel($input: CreateLabelInput!) {
+          createLabel(input: $input) {
             ... on CreateLabelSuccess {
               label {
                 id
@@ -133,12 +124,9 @@ describe('Labels API', () => {
           }
         }
       `
-    })
 
     context('when name not exists', () => {
-      before(() => {
-        name = 'label3'
-      })
+      const name = 'label3'
 
       after(async () => {
         // clean up
@@ -146,7 +134,9 @@ describe('Labels API', () => {
       })
 
       it('should create label', async () => {
-        const res = await graphqlRequest(query, authToken).expect(200)
+        const res = await graphqlRequest(query, authToken, {
+          input: { name },
+        }).expect(200)
         const label = await findLabelById(
           res.body.data.createLabel.label.id,
           user.id
@@ -160,17 +150,30 @@ describe('Labels API', () => {
 
       before(async () => {
         existingLabel = await createLabel('label3', '#ffffff', user.id)
-        name = existingLabel.name
       })
 
       after(async () => {
         await deleteLabels({ id: existingLabel.id }, user.id)
       })
 
-      it('should return error code BAD_REQUEST', async () => {
-        const res = await graphqlRequest(query, authToken).expect(200)
+      it('should return error code LABEL_ALREADY_EXISTS', async () => {
+        const res = await graphqlRequest(query, authToken, {
+          input: { name: existingLabel.name },
+        }).expect(200)
 
-        expect(res.body.data.createLabel.errorCodes).to.eql(['BAD_REQUEST'])
+        expect(res.body.data.createLabel.errorCodes).to.eql([
+          'LABEL_ALREADY_EXISTS',
+        ])
+      })
+
+      it('returns error code LABEL_ALREADY_EXISTS if case-insensitive label name exists', async () => {
+        const name = existingLabel.name.toUpperCase()
+        const res = await graphqlRequest(query, authToken, {
+          input: { name },
+        }).expect(200)
+        expect(res.body.data.createLabel.errorCodes).to.eql([
+          'LABEL_ALREADY_EXISTS',
+        ])
       })
     })
 
@@ -190,13 +193,11 @@ describe('Labels API', () => {
   })
 
   describe('Delete label', () => {
-    let query: string
     let labelId: string
 
-    beforeEach(() => {
-      query = `
-        mutation {
-          deleteLabel(id: "${labelId}") {
+    const query = `
+        mutation DeleteLabel($labelId: ID!){
+          deleteLabel(id: $labelId) {
             ... on DeleteLabelSuccess {
               label {
                 id
@@ -209,11 +210,26 @@ describe('Labels API', () => {
           }
         }
       `
-    })
 
     context('when label exists', () => {
       let toDeleteLabel: Label
 
+      context('when label is internal', () => {
+        before(async () => {
+          toDeleteLabel = await createLabel('rss', '#ffffff', user.id)
+          labelId = toDeleteLabel.id
+        })
+
+        it('should delete label', async () => {
+          await graphqlRequest(query, authToken, {
+            labelId,
+          }).expect(200)
+
+          const label = await findLabelById(labelId, user.id)
+          expect(label).not.exist
+        })
+      })
+
       context('when label is not used', () => {
         before(async () => {
           toDeleteLabel = await createLabel(
@@ -225,7 +241,9 @@ describe('Labels API', () => {
         })
 
         it('should delete label', async () => {
-          await graphqlRequest(query, authToken).expect(200)
+          await graphqlRequest(query, authToken, {
+            labelId,
+          }).expect(200)
           const label = await findLabelById(labelId, user.id)
           expect(label).not.exist
         })
@@ -245,7 +263,9 @@ describe('Labels API', () => {
         })
 
         it('should update page', async () => {
-          await graphqlRequest(query, authToken).expect(200)
+          await graphqlRequest(query, authToken, {
+            labelId,
+          }).expect(200)
 
           const updatedItem = await findLibraryItemById(item.id, user.id)
           expect(updatedItem?.labels).not.deep.include(toDeleteLabel)
@@ -280,7 +300,9 @@ describe('Labels API', () => {
         })
 
         it('should update highlight', async () => {
-          await graphqlRequest(query, authToken).expect(200)
+          await graphqlRequest(query, authToken, {
+            labelId,
+          }).expect(200)
 
           const updatedHighlight = await findHighlightById(highlightId, user.id)
           expect(updatedHighlight?.labels).not.deep.include(toDeleteLabel)
@@ -294,7 +316,9 @@ describe('Labels API', () => {
       })
 
       it('should return error code NOT_FOUND', async () => {
-        const res = await graphqlRequest(query, authToken).expect(200)
+        const res = await graphqlRequest(query, authToken, {
+          labelId,
+        }).expect(200)
 
         expect(res.body.data.deleteLabel.errorCodes).to.eql(['NOT_FOUND'])
       })
@@ -334,10 +358,7 @@ describe('Labels API', () => {
 
     after(async () => {
       // clean up
-      await deleteLabels(
-        { user: { id: user.id } },
-        user.id
-      )
+      await deleteLabels({ user: { id: user.id } }, user.id)
       await deleteLibraryItemById(item.id)
     })
 
@@ -464,7 +485,7 @@ describe('Labels API', () => {
       })
 
       after(async () => {
-        await deleteLabels( { id: toUpdateLabel.id }, user.id)
+        await deleteLabels({ id: toUpdateLabel.id }, user.id)
       })
 
       it('should return the updated label', async () => {
@@ -538,10 +559,7 @@ describe('Labels API', () => {
 
     after(async () => {
       // clean up
-      await deleteLabels(
-        { user: { id: user.id } },
-        user.id
-      )
+      await deleteLabels({ user: { id: user.id } }, user.id)
       await deleteLibraryItemById(item.id)
     })
 
@@ -588,7 +606,9 @@ describe('Labels API', () => {
       it('should set labels for highlight', async () => {
         const res = await graphqlRequest(query, authToken).expect(200)
         expect(
-          res.body.data.setLabelsForHighlight.labels.map((l: any) => l.id)
+          (res.body.data.setLabelsForHighlight.labels as Label[]).map(
+            (l) => l.id
+          )
         ).to.eql(labelIds)
       })
     })
@@ -652,7 +672,7 @@ describe('Labels API', () => {
       `
     let labelId: string
     let afterLabelId: string
-    let labels: Label[] = []
+    const labels: Label[] = []
 
     before(async () => {
       //  create testing labels
@@ -671,7 +691,7 @@ describe('Labels API', () => {
     })
 
     context('when label exists', () => {
-      before(async () => {
+      before(() => {
         labelId = labels[1].id
         afterLabelId = labels[4].id
       })
diff --git a/packages/web/pages/settings/rules.tsx b/packages/web/pages/settings/rules.tsx
index 3cd9441e5..c74907ade 100644
--- a/packages/web/pages/settings/rules.tsx
+++ b/packages/web/pages/settings/rules.tsx
@@ -25,6 +25,14 @@ type CreateRuleModalProps = {
   revalidate: () => void
 }
 
+const eventTypeObj = {
+  PAGE_CREATED: 'PAGE_CREATED',
+  PAGE_UPDATED: 'PAGE_UPDATED',
+  HIGHLIGHT_CREATED: 'HIGHLIGHT_CREATED',
+  HIGHLIGHT_UPDATED: 'HIGHLIGHT_UPDATED',
+  LABEL_CREATED: 'LABEL_ATTACHED',
+}
+
 const CreateRuleModal = (props: CreateRuleModalProps): JSX.Element => {
   const [form] = Form.useForm()
 
@@ -104,7 +112,7 @@ const CreateRuleModal = (props: CreateRuleModalProps): JSX.Element => {
               const value = Object.values(RuleEventType)[index]
               return (
                 <Select.Option key={key} value={value}>
-                  {key === 'LABEL_CREATED' ? 'LABEL_ATTACHED' : key}
+                  {eventTypeObj[value]}
                 </Select.Option>
               )
             })}
@@ -363,7 +371,7 @@ export default function Rules(): JSX.Element {
           {row.eventTypes.map((eventType: RuleEventType, index: number) => {
             return (
               <Tag color={'geekblue'} key={index}>
-                {eventType}
+                {eventTypeObj[eventType]}
               </Tag>
             )
           })}