diff --git a/app/assets/javascripts/admin/abuse_reports/components/abuse_category.vue b/app/assets/javascripts/admin/abuse_reports/components/abuse_category.vue
index 3fc4c576e8e93cda44bff77d15750e92eff74f2c..a9708e3219fbedc991cc925c516259a0085b8e34 100644
--- a/app/assets/javascripts/admin/abuse_reports/components/abuse_category.vue
+++ b/app/assets/javascripts/admin/abuse_reports/components/abuse_category.vue
@@ -24,7 +24,6 @@ export default {
 <template>
   <gl-label
     v-if="categoryObject"
-    size="sm"
     :background-color="categoryObject.backgroundColor"
     :title="categoryObject.title"
     :target="null"
diff --git a/app/assets/javascripts/admin/abuse_reports/components/abuse_report_row.vue b/app/assets/javascripts/admin/abuse_reports/components/abuse_report_row.vue
index b9fef57c2a2322ecf8ddcf285e2ed113869a443b..367a413bf833c686c95e3ccdfe5071a532b2d1d4 100644
--- a/app/assets/javascripts/admin/abuse_reports/components/abuse_report_row.vue
+++ b/app/assets/javascripts/admin/abuse_reports/components/abuse_report_row.vue
@@ -79,7 +79,6 @@ export default {
         v-for="label in report.labels"
         :key="label.id"
         class="gl-mr-2"
-        size="sm"
         :background-color="label.color"
         :title="label.title"
         :target="labelTarget(label.title)"
diff --git a/app/assets/javascripts/boards/components/board_card_inner.vue b/app/assets/javascripts/boards/components/board_card_inner.vue
index e7a972587f4f66724708ac4a90d34d9a1ad917ff..42e12601ad189e59179870e53c079957dcf22207 100644
--- a/app/assets/javascripts/boards/components/board_card_inner.vue
+++ b/app/assets/javascripts/boards/components/board_card_inner.vue
@@ -286,7 +286,6 @@ export default {
           :background-color="label.color"
           :title="label.title"
           :description="label.description"
-          size="sm"
           :scoped="showScopedLabel(label)"
           target="#"
           @click="filterByLabel(label)"
diff --git a/app/assets/javascripts/boards/components/board_list_header.vue b/app/assets/javascripts/boards/components/board_list_header.vue
index 8a8f149dc6a2ac60147aef8c66fd3ebdfcca90fd..f3a00403270e203892e45bcc797b87fa4b9b886b 100644
--- a/app/assets/javascripts/boards/components/board_list_header.vue
+++ b/app/assets/javascripts/boards/components/board_list_header.vue
@@ -416,7 +416,6 @@ export default {
           :background-color="list.label.color"
           :description="list.label.description"
           :scoped="showScopedLabels(list.label)"
-          :size="list.collapsed ? 'sm' : ''"
           :title="list.label.title"
         />
       </div>
diff --git a/app/assets/javascripts/content_editor/components/wrappers/reference_label.vue b/app/assets/javascripts/content_editor/components/wrappers/reference_label.vue
index c67e699cf954d5b73406c0a165dfd9893835468a..96ee612af20efa5460b75c4bf687d1d37d840475 100644
--- a/app/assets/javascripts/content_editor/components/wrappers/reference_label.vue
+++ b/app/assets/javascripts/content_editor/components/wrappers/reference_label.vue
@@ -31,7 +31,6 @@ export default {
 <template>
   <node-view-wrapper as="span" :class="{ 'ProseMirror-selectednode': selected }">
     <gl-label
-      size="sm"
       :scoped="isScopedLabel"
       :background-color="node.attrs.color || $options.fallbackLabelBackgroundColor"
       :title="node.attrs.text"
diff --git a/app/assets/javascripts/groups/components/group_item.vue b/app/assets/javascripts/groups/components/group_item.vue
index 7ed754b714aad79d18859f0970b1fd589437ea90..f3733bc842e11e811bf75b0c30aa79890108cddc 100644
--- a/app/assets/javascripts/groups/components/group_item.vue
+++ b/app/assets/javascripts/groups/components/group_item.vue
@@ -248,7 +248,6 @@ export default {
               v-if="hasComplianceFramework"
               :framework="complianceFramework"
               :show-edit="false"
-              size="sm"
             />
           </div>
           <div v-if="group.description" class="description gl-font-sm gl-mt-1">
diff --git a/app/assets/javascripts/issues/list/components/jira_issues_import_status_app.vue b/app/assets/javascripts/issues/list/components/jira_issues_import_status_app.vue
index fb1dbef666c685157c3b57f5bb01ff51635be18f..43e09b2420f917f263de19de61d78b2bf35440c6 100644
--- a/app/assets/javascripts/issues/list/components/jira_issues_import_status_app.vue
+++ b/app/assets/javascripts/issues/list/components/jira_issues_import_status_app.vue
@@ -103,7 +103,6 @@ export default {
       <gl-label
         :background-color="jiraImport.label.color"
         scoped
-        size="sm"
         :target="labelTarget"
         :title="jiraImport.label.title"
       />
diff --git a/app/assets/javascripts/vue_shared/components/filtered_search_bar/tokens/label_token.vue b/app/assets/javascripts/vue_shared/components/filtered_search_bar/tokens/label_token.vue
index a8c25fa86836bfcf008f8c1e6a1881241a8ae484..f3a60bb353fa4f52eb0e21e1fbe5f27e4a05e4f7 100644
--- a/app/assets/javascripts/vue_shared/components/filtered_search_bar/tokens/label_token.vue
+++ b/app/assets/javascripts/vue_shared/components/filtered_search_bar/tokens/label_token.vue
@@ -151,7 +151,6 @@ export default {
           :background-color="getLabelBackgroundColor(label)"
           :scoped="showScopedLabel(label)"
           :title="label"
-          size="sm"
         />
       </gl-intersperse>
       <template v-else>
@@ -162,7 +161,6 @@ export default {
           "
           :scoped="showScopedLabel(activeTokenValue ? getLabelName(activeTokenValue) : inputValue)"
           :title="activeTokenValue ? getLabelName(activeTokenValue) : inputValue"
-          size="sm"
       /></template>
     </template>
     <template #suggestions-list="{ suggestions, selections = [] }">
diff --git a/app/assets/javascripts/vue_shared/issuable/list/components/issuable_item.vue b/app/assets/javascripts/vue_shared/issuable/list/components/issuable_item.vue
index 4dce443b709fc3c12d54ae9f0572a56bf53f7007..2419c347b9f490ac2ab6187f473f3aa4fe1d12b6 100644
--- a/app/assets/javascripts/vue_shared/issuable/list/components/issuable_item.vue
+++ b/app/assets/javascripts/vue_shared/issuable/list/components/issuable_item.vue
@@ -370,7 +370,6 @@ export default {
             :description="label.description"
             :scoped="scopedLabel(label)"
             :target="labelTarget(label)"
-            size="sm"
           />
         </p>
       </div>
diff --git a/app/assets/javascripts/work_items/components/shared/work_item_link_child_contents.vue b/app/assets/javascripts/work_items/components/shared/work_item_link_child_contents.vue
index 1e73a4c690f2e75c6b2467c955c06fb7d895b65f..7aca7e4a23d1bf0d65b46ea51ee7b71fddcdfeaa 100644
--- a/app/assets/javascripts/work_items/components/shared/work_item_link_child_contents.vue
+++ b/app/assets/javascripts/work_items/components/shared/work_item_link_child_contents.vue
@@ -232,7 +232,7 @@ export default {
           :background-color="label.color"
           :description="label.description"
           :scoped="showScopedLabel(label)"
-          class="gl-mt-2 gl-mr-2 gl-mb-auto gl-label-sm"
+          class="gl-mt-2 gl-mr-2 gl-mb-auto"
           tooltip-placement="top"
         />
       </div>
diff --git a/app/assets/stylesheets/framework.scss b/app/assets/stylesheets/framework.scss
index 728dda8a769b02289e299e805c5c3c0cb4cfc46b..d57999d56379ec9389926de49a5f6c7776dc8872 100644
--- a/app/assets/stylesheets/framework.scss
+++ b/app/assets/stylesheets/framework.scss
@@ -26,7 +26,6 @@
 @import 'framework/header';
 @import 'framework/top_bar';
 @import 'framework/highlight';
-@import 'framework/labels';
 @import 'framework/lists';
 @import 'framework/logo';
 @import 'framework/markdown_area';
diff --git a/app/assets/stylesheets/framework/common.scss b/app/assets/stylesheets/framework/common.scss
index 3fe23a12898d138893a70fa35e5375e9649b58c8..b0dfdd981ce7c1b452c5a5aa0877836678fec0e9 100644
--- a/app/assets/stylesheets/framework/common.scss
+++ b/app/assets/stylesheets/framework/common.scss
@@ -561,10 +561,6 @@ See https://gitlab.com/gitlab-org/gitlab/issues/36857 for more details.
 
 .gl-label-scoped {
   box-shadow: 0 0 0 2px currentColor inset;
-
-  &.gl-label-sm {
-    box-shadow: 0 0 0 1px inset;
-  }
 }
 
 .ref-container,
diff --git a/app/assets/stylesheets/framework/labels.scss b/app/assets/stylesheets/framework/labels.scss
deleted file mode 100644
index 9a9edbeb91a1980766f7a9ad4c09860c13764ed5..0000000000000000000000000000000000000000
--- a/app/assets/stylesheets/framework/labels.scss
+++ /dev/null
@@ -1,56 +0,0 @@
-// FF :simplified_labels
-//
-// Temporarily override label styles
-// globally
-//
-// Once verified we will update the
-// label component in GitLab UI
-// refactor GitLab and remove this
-// custom code
-//
-// see https://gitlab.com/gitlab-org/gitlab-ui/-/merge_requests/3307
-.ff-simplified-labels-enabled {
-  // These changes will be moved to
-  // GitLab UI's label component
-  .gl-label,
-  .gl-label-sm {
-    vertical-align: bottom;
-
-    &:focus:active {
-      color: inherit;
-      box-shadow: none;
-      outline: none;
-    }
-
-    .gl-label-text,
-    .gl-label-text-scoped {
-      font-size: $gl-font-size-sm;
-      padding-block: $gl-spacing-scale-1;
-      padding-inline: calc(#{$gl-spacing-scale-3} - 2px);
-    }
-
-    > .gl-label-close.gl-button {
-      width: px-to-rem(14px);
-      height: px-to-rem(14px);
-      margin-left: calc(#{-$gl-spacing-scale-2} - 1px);
-      margin-right: calc(#{$gl-spacing-scale-2} - 1px);
-    }
-  }
-
-  // These changes will be moved to
-  // app/assets/stylesheets/framework/sidebar.scss
-  .issuable-show-labels .gl-label {
-    margin-bottom: $gl-spacing-scale-2;
-    margin-right: $gl-spacing-scale-2;
-  }
-
-  // These changes will be moved to
-  // app/assets/stylesheets/framework/typography.scss
-  .md p > code {
-    font-size: px-to-rem(13px);
-  }
-
-  .md code {
-    vertical-align: bottom;
-  }
-}
diff --git a/app/assets/stylesheets/framework/sidebar.scss b/app/assets/stylesheets/framework/sidebar.scss
index 27e899e79a996c23fcc00883a82ca2b6b00d17d4..782f29a07b189a5f59a4bf8529c7b7f8d4217a5e 100644
--- a/app/assets/stylesheets/framework/sidebar.scss
+++ b/app/assets/stylesheets/framework/sidebar.scss
@@ -742,8 +742,8 @@
 
 .issuable-show-labels {
   .gl-label {
-    margin-bottom: 5px;
-    margin-right: 5px;
+    margin-bottom: $gl-spacing-scale-2;
+    margin-right: $gl-spacing-scale-2;
   }
 
   a {
diff --git a/app/assets/stylesheets/framework/typography.scss b/app/assets/stylesheets/framework/typography.scss
index a8f5961e4c881705dbd8894d2b31137520d3e0f4..bb49ef89d99d5042adcfe369a48c2b4f0ab036a7 100644
--- a/app/assets/stylesheets/framework/typography.scss
+++ b/app/assets/stylesheets/framework/typography.scss
@@ -80,6 +80,7 @@
   // Single code lines should wrap
   code {
     font-family: $monospace-font;
+    vertical-align: bottom;
     white-space: pre-wrap;
     // Safari
     word-wrap: break-word;
diff --git a/app/assets/stylesheets/pages/events.scss b/app/assets/stylesheets/pages/events.scss
index 07655694784b1808da21b0b332a2228380e9ac0b..bd573c7a9c12679320a3081fe8d3ee1f56366146 100644
--- a/app/assets/stylesheets/pages/events.scss
+++ b/app/assets/stylesheets/pages/events.scss
@@ -79,10 +79,6 @@
         iframe.twitter-share-button {
           vertical-align: bottom;
         }
-
-        .gl-label-scoped.gl-label-sm {
-          --label-inset-border: inset 0 0 0 1px currentColor;
-        }
       }
 
       code {
diff --git a/app/helpers/labels_helper.rb b/app/helpers/labels_helper.rb
index a6bc9bcf2053fbf84ca93dc94c751cb9516075b1..486ccd46be0332598e2a1b22b8a0cef4af8f5e58 100644
--- a/app/helpers/labels_helper.rb
+++ b/app/helpers/labels_helper.rb
@@ -36,17 +36,17 @@ def show_label_issuables_link?(label, issuables_type, current_user: nil)
   #   link_to_label(label) { "My Custom Label Text" }
   #
   # Returns a String
-  def link_to_label(label, type: :issue, tooltip: true, small: false, css_class: nil, &block)
+  def link_to_label(label, type: :issue, tooltip: true, css_class: nil, &block)
     link = label.filter_path(type: type)
 
     if block
       link_to link, class: css_class, &block
     else
-      render_label(label, link: link, tooltip: tooltip, small: small)
+      render_label(label, link: link, tooltip: tooltip)
     end
   end
 
-  def render_label(label, link: nil, tooltip: true, dataset: nil, small: false, tooltip_shows_title: false)
+  def render_label(label, link: nil, tooltip: true, dataset: nil, tooltip_shows_title: false)
     html = render_colored_label(label)
 
     if link
@@ -54,7 +54,7 @@ def render_label(label, link: nil, tooltip: true, dataset: nil, small: false, to
       html = render_label_link(html, link: link, title: title, dataset: dataset)
     end
 
-    wrap_label_html(html, small: small, label: label)
+    wrap_label_html(html, label: label)
   end
 
   def render_colored_label(label, suffix: '')
@@ -67,9 +67,8 @@ def render_colored_label(label, suffix: '')
   end
 
   # We need the `label` argument here for EE
-  def wrap_label_html(label_html, small:, label:)
+  def wrap_label_html(label_html, label:)
     wrapper_classes = %w[gl-label]
-    wrapper_classes << 'gl-label-sm' if small
 
     %(<span class="#{wrapper_classes.join(' ')}">#{label_html}</span>).html_safe
   end
diff --git a/app/serializers/analytics/cycle_analytics/stage_entity.rb b/app/serializers/analytics/cycle_analytics/stage_entity.rb
index 06b39fedec9993114444f4edf9210e352aed98c3..ef88e1da7b0bd28385fd4f80baa78d04e1e878ca 100644
--- a/app/serializers/analytics/cycle_analytics/stage_entity.rb
+++ b/app/serializers/analytics/cycle_analytics/stage_entity.rb
@@ -58,7 +58,7 @@ def html_description(event)
         options = {}
         if event.label_based?
           label = event.label.present(issuable_subject: event.label.subject)
-          options[:label_html] = render_label(label, link: '', small: true, tooltip: true)
+          options[:label_html] = render_label(label, link: '', tooltip: true)
         end
 
         content_tag(:p) { event.html_description(options).html_safe }
diff --git a/app/views/layouts/application.html.haml b/app/views/layouts/application.html.haml
index 60af6741835460283f83f8d977ee1c586047f716..309ad07d99d6eafbc2277c91883e583b43db0fbe 100644
--- a/app/views/layouts/application.html.haml
+++ b/app/views/layouts/application.html.haml
@@ -1,13 +1,12 @@
 - page_classes = page_class << @html_class
 - page_classes = [user_application_color_mode, user_application_theme, page_classes.flatten.compact]
 - body_classes = [user_tab_width, @body_class, client_class_list, *custom_diff_color_classes]
-- ff_simplified_labels_classes = Feature.enabled?(:simplified_labels, current_user) ? 'ff-simplified-labels-enabled' : ''
 - ff_simplified_badges_classes = Feature.enabled?(:simplified_badges, current_user) ? 'ff-simplified-badges-enabled' : ''
 
 !!! 5
 %html{ lang: I18n.locale, class: page_classes }
   = render "layouts/head"
-  %body{ class: [body_classes, ff_simplified_labels_classes, ff_simplified_badges_classes], data: body_data }
+  %body{ class: [body_classes, ff_simplified_badges_classes], data: body_data }
     = render "layouts/init_auto_complete" if @gfm_form
     = render "layouts/init_client_detection_flags"
     = render "layouts/visual_review" if review_apps_enabled?
diff --git a/app/views/projects/_issue.html.haml b/app/views/projects/_issue.html.haml
index cc1d9a51811a38fe14fb31ab2b29cb2560374035..3fd931edec36163c2b86c2eaf9fe73ca4d686f6c 100644
--- a/app/views/projects/_issue.html.haml
+++ b/app/views/projects/_issue.html.haml
@@ -41,7 +41,7 @@
         - if issue.labels.any?
           &nbsp;
           - presented_labels_sorted_by_title(issue.labels, issue.project).each do |label|
-            = link_to_label(label, small: true)
+            = link_to_label(label)
 
         = render 'projects/issue_estimate', issue: issue
 
diff --git a/app/views/projects/merge_requests/_merge_request.html.haml b/app/views/projects/merge_requests/_merge_request.html.haml
index 0b90b7409aad5501bf545b7d92ea3beb5152b81a..b0ad1ca383e1d1d1fe8a74bed9de294244325425 100644
--- a/app/views/projects/merge_requests/_merge_request.html.haml
+++ b/app/views/projects/merge_requests/_merge_request.html.haml
@@ -40,7 +40,7 @@
         - if merge_request.labels.any?
           .gl-mt-1.gl-display-flex.gl-flex-wrap.gl-gap-2{ role: 'group', 'aria-label': _('Labels') }
             - presented_labels_sorted_by_title(merge_request.labels, merge_request.project).each do |label|
-              = link_to_label(label, type: :merge_request, small: true)
+              = link_to_label(label, type: :merge_request)
 
     .issuable-meta
       %ul.controls.d-flex.gl-align-items-center
diff --git a/app/views/search/results/_issuable.html.haml b/app/views/search/results/_issuable.html.haml
index bd98e0b087cd5d651b1feccd0ae2db97ecba939a..7a46f3fa4511e4a8dfa7739d0fd99df5b557011a 100644
--- a/app/views/search/results/_issuable.html.haml
+++ b/app/views/search/results/_issuable.html.haml
@@ -20,7 +20,7 @@
     - if issuable.labels.any?
       .gl-mt-3
         - presented_labels_sorted_by_title(issuable.labels, issuable.project).each do |label|
-          = link_to_label(label, small: true)
+          = link_to_label(label)
 
   .col-sm-3.gl-mt-3.gl-sm-mt-0.gl-text-right
     - if issuable.respond_to?(:upvotes_count) && issuable.upvotes_count > 0
diff --git a/app/views/shared/milestones/_issuable.html.haml b/app/views/shared/milestones/_issuable.html.haml
index 12380d4c34ecfb5f1ab5104d379c492550437ed0..9a3df35d4bf323764a1a5b8c9ac08e8641a34e8b 100644
--- a/app/views/shared/milestones/_issuable.html.haml
+++ b/app/views/shared/milestones/_issuable.html.haml
@@ -18,7 +18,7 @@
       %span.issuable-number= issuable.to_reference
 
     - labels.each do |label|
-      = render_label(label.present(issuable_subject: project), link: polymorphic_path(issuable_type_args, { milestone_title: @milestone.title, label_name: label.title, state: 'all' }), small: true)
+      = render_label(label.present(issuable_subject: project), link: polymorphic_path(issuable_type_args, { milestone_title: @milestone.title, label_name: label.title, state: 'all' }))
 
     %span.assignee-icon
       - assignees.each do |assignee|
diff --git a/config/feature_flags/development/simplified_labels.yml b/config/feature_flags/development/simplified_labels.yml
deleted file mode 100644
index 95619cd5ea53d3141e7d7e64eff84c0319c2873b..0000000000000000000000000000000000000000
--- a/config/feature_flags/development/simplified_labels.yml
+++ /dev/null
@@ -1,8 +0,0 @@
----
-name: simplified_labels
-introduced_by_url: https://gitlab.com/gitlab-org/gitlab/-/merge_requests/140239
-rollout_issue_url: https://gitlab.com/gitlab-org/gitlab/-/issues/437859
-milestone: '16.8'
-type: development
-group: group::ux paper cuts
-default_enabled: false
diff --git a/ee/app/assets/javascripts/analytics/dashboards/components/comparison_chart_labels.vue b/ee/app/assets/javascripts/analytics/dashboards/components/comparison_chart_labels.vue
index 25acd81c94193c3f0576ac7dae9778b960ce0a9d..f3e1a7a8388f9edd7d330119cd755a69571a9e9c 100644
--- a/ee/app/assets/javascripts/analytics/dashboards/components/comparison_chart_labels.vue
+++ b/ee/app/assets/javascripts/analytics/dashboards/components/comparison_chart_labels.vue
@@ -72,7 +72,6 @@ export default {
         :background-color="label.color"
         :scoped="isScoped(label)"
         :target="labelTarget(label.title)"
-        size="sm"
       />
     </span>
 
@@ -94,7 +93,6 @@ export default {
               :background-color="label.color"
               :scoped="isScoped(label)"
               :target="labelTarget(label.title)"
-              size="sm"
             />
           </div>
         </div>
diff --git a/ee/app/assets/javascripts/ci/secrets/components/secrets_table/secrets_table.vue b/ee/app/assets/javascripts/ci/secrets/components/secrets_table/secrets_table.vue
index 4d7c218c8ee00407237827f552404c96a85888e1..5abf7add93fd93895a2f9a2c4197b93557f4b7f7 100644
--- a/ee/app/assets/javascripts/ci/secrets/components/secrets_table/secrets_table.vue
+++ b/ee/app/assets/javascripts/ci/secrets/components/secrets_table/secrets_table.vue
@@ -176,7 +176,6 @@ export default {
             :title="label"
             :background-color="getLabelBackgroundColor(label)"
             :scoped="isScopedLabel(label)"
-            size="sm"
             class="gl-mt-3 gl-mr-3"
           />
         </template>
diff --git a/ee/app/assets/javascripts/compliance_dashboard/components/frameworks_report/framework_info_drawer.vue b/ee/app/assets/javascripts/compliance_dashboard/components/frameworks_report/framework_info_drawer.vue
index 0bc8366fd254f251158b02cfd5d19dbe8d5c95f4..2665980f06cf196399890e6157ef42bda40bed46 100644
--- a/ee/app/assets/javascripts/compliance_dashboard/components/frameworks_report/framework_info_drawer.vue
+++ b/ee/app/assets/javascripts/compliance_dashboard/components/frameworks_report/framework_info_drawer.vue
@@ -101,7 +101,6 @@ export default {
             v-if="defaultFramework"
             :background-color="framework.color"
             :title="$options.i18n.defaultFramework"
-            size="sm"
           />
         </h2>
         <gl-button
diff --git a/ee/app/assets/javascripts/compliance_dashboard/components/shared/framework_badge.vue b/ee/app/assets/javascripts/compliance_dashboard/components/shared/framework_badge.vue
index c15c145a302460390629b20a4f816c2a058bcae5..8d78510b1c078cfc1e48507327b1823141a18c5c 100644
--- a/ee/app/assets/javascripts/compliance_dashboard/components/shared/framework_badge.vue
+++ b/ee/app/assets/javascripts/compliance_dashboard/components/shared/framework_badge.vue
@@ -2,11 +2,7 @@
 import { GlButton, GlLabel, GlPopover } from '@gitlab/ui';
 import { s__ } from '~/locale';
 
-import {
-  FRAMEWORK_BADGE_SIZE_MD,
-  FRAMEWORK_BADGE_SIZES,
-  ROUTE_EDIT_FRAMEWORK,
-} from '../../constants';
+import { ROUTE_EDIT_FRAMEWORK } from '../../constants';
 
 export default {
   name: 'ComplianceFrameworkBadge',
@@ -20,12 +16,6 @@ export default {
       type: Object,
       required: true,
     },
-    size: {
-      type: String,
-      required: false,
-      default: FRAMEWORK_BADGE_SIZE_MD,
-      validator: (val) => FRAMEWORK_BADGE_SIZES.includes(val),
-    },
     showDefault: {
       type: Boolean,
       required: false,
@@ -93,7 +83,6 @@ export default {
         :data-testid="frameworkTestId"
         :background-color="framework.color"
         :title="frameworkName"
-        :size="size"
         :show-close-button="closeable"
         class="gl-md-max-w-26"
         @close="$emit('close')"
diff --git a/ee/app/assets/javascripts/compliance_dashboard/components/standards_adherence_report/base_table.vue b/ee/app/assets/javascripts/compliance_dashboard/components/standards_adherence_report/base_table.vue
index 1dc31f3f3e4583bb5f00826c8148812d077024c9..2a2beb02904a90b8e6f41eb41fca8030bb2e198a 100644
--- a/ee/app/assets/javascripts/compliance_dashboard/components/standards_adherence_report/base_table.vue
+++ b/ee/app/assets/javascripts/compliance_dashboard/components/standards_adherence_report/base_table.vue
@@ -293,7 +293,7 @@ export default {
           class="gl-label"
           :title="framework.name"
         >
-          <framework-badge :framework="framework" size="sm" />
+          <framework-badge :framework="framework" />
         </div>
       </template>
 
diff --git a/ee/app/assets/javascripts/compliance_dashboard/components/standards_adherence_report/fix_suggestions_sidebar.vue b/ee/app/assets/javascripts/compliance_dashboard/components/standards_adherence_report/fix_suggestions_sidebar.vue
index 45767a7043237c0218ae528d08472ac97bd78865..5cc0331aa18a65890f2184253b18e8f296914b3a 100644
--- a/ee/app/assets/javascripts/compliance_dashboard/components/standards_adherence_report/fix_suggestions_sidebar.vue
+++ b/ee/app/assets/javascripts/compliance_dashboard/components/standards_adherence_report/fix_suggestions_sidebar.vue
@@ -97,7 +97,7 @@ export default {
           <gl-link class="gl-mx-3" :href="project.webUrl"> {{ project.name }} </gl-link>
 
           <span v-for="framework in project.complianceFrameworks.nodes" :key="framework.id">
-            <framework-badge :framework="framework" size="sm" :show-edit="false" />
+            <framework-badge :framework="framework" :show-edit="false" />
           </span>
         </div>
       </div>
diff --git a/ee/app/assets/javascripts/compliance_dashboard/components/violations_report/drawer_sections/project.vue b/ee/app/assets/javascripts/compliance_dashboard/components/violations_report/drawer_sections/project.vue
index ab69cf6f52a763e37f2ccbf22f76b37f6dc8c00a..aee2cb5acad48a61313c41e58d550fffb4dfecd3 100644
--- a/ee/app/assets/javascripts/compliance_dashboard/components/violations_report/drawer_sections/project.vue
+++ b/ee/app/assets/javascripts/compliance_dashboard/components/violations_report/drawer_sections/project.vue
@@ -62,7 +62,6 @@ export default {
         v-if="hasComplianceFramework"
         :framework="complianceFramework"
         :show-default="false"
-        size="sm"
         class="gl-ml-3"
       />
     </div>
diff --git a/ee/app/assets/javascripts/compliance_dashboard/constants.js b/ee/app/assets/javascripts/compliance_dashboard/constants.js
index 448b2caef40832c99094a175e1b5b18fe1cf087b..981a433b960d0f2f08aa4dc775998c8e108e0fec 100644
--- a/ee/app/assets/javascripts/compliance_dashboard/constants.js
+++ b/ee/app/assets/javascripts/compliance_dashboard/constants.js
@@ -33,10 +33,6 @@ export const BRANCH_FILTER_OPTIONS = {
   allProtectedBranches: __('All protected branches'),
 };
 
-export const FRAMEWORK_BADGE_SIZE_SM = 'sm';
-export const FRAMEWORK_BADGE_SIZE_MD = 'md';
-export const FRAMEWORK_BADGE_SIZES = [FRAMEWORK_BADGE_SIZE_SM, FRAMEWORK_BADGE_SIZE_MD];
-
 export const ROUTE_STANDARDS_ADHERENCE = 'standards_adherence';
 export const ROUTE_VIOLATIONS = 'violations';
 export const ROUTE_PROJECTS = 'projects';
diff --git a/ee/app/assets/javascripts/logs/list/logs_table.vue b/ee/app/assets/javascripts/logs/list/logs_table.vue
index 0c19c017e8911f8cd6b0f25a553292b26801a965..d8e06fc999c999e99c01543c057ba17aea9a6750 100644
--- a/ee/app/assets/javascripts/logs/list/logs_table.vue
+++ b/ee/app/assets/javascripts/logs/list/logs_table.vue
@@ -102,7 +102,6 @@ export default {
     >
       <template #cell(severity_number)="{ item }">
         <gl-label
-          size="sm"
           :background-color="severityLabel(item.severity_number).color"
           :title="severityLabel(item.severity_number).title"
         />
diff --git a/ee/app/assets/javascripts/related_items_tree/components/tree_item_body.vue b/ee/app/assets/javascripts/related_items_tree/components/tree_item_body.vue
index 550fe40f67ddf2a1a80f78977142a6edcadcd66c..066c07bde661141bb242c2dbd05e5a6192ad4e38 100644
--- a/ee/app/assets/javascripts/related_items_tree/components/tree_item_body.vue
+++ b/ee/app/assets/javascripts/related_items_tree/components/tree_item_body.vue
@@ -349,7 +349,7 @@ export default {
                 :scoped="showScopedLabel(label)"
                 :target="labelFilterUrl(label)"
                 :title="label.title"
-                class="gl-mr-2 gl-mb-1 gl-label-sm"
+                class="gl-mr-2 gl-mb-1"
                 tooltip-placement="top"
               />
             </template>
diff --git a/ee/app/assets/javascripts/roadmap/components/epic_item_details.vue b/ee/app/assets/javascripts/roadmap/components/epic_item_details.vue
index 31f72cccc67fe4529bdbf9c88e3090d7d661a23c..574986b4cbefb3b75ee7dad8a73d38a85783e0c7 100644
--- a/ee/app/assets/javascripts/roadmap/components/epic_item_details.vue
+++ b/ee/app/assets/javascripts/roadmap/components/epic_item_details.vue
@@ -212,7 +212,6 @@ export default {
             class="js-no-trigger gl-mt-2 gl-mr-2"
             :background-color="label.color"
             :title="label.title"
-            size="sm"
             :target="filterByLabelUrl(label)"
             :description="label.description"
             :scoped="scopedLabel(label)"
diff --git a/ee/app/assets/javascripts/security_orchestration/components/policy_drawer/compliance_frameworks_toggle_list.vue b/ee/app/assets/javascripts/security_orchestration/components/policy_drawer/compliance_frameworks_toggle_list.vue
index 3662034c17a5d5a66fce0d3c92e9b1a99b1d89ef..b27db41209d9767d4bc8aa10a24f1582bbd0355d 100644
--- a/ee/app/assets/javascripts/security_orchestration/components/policy_drawer/compliance_frameworks_toggle_list.vue
+++ b/ee/app/assets/javascripts/security_orchestration/components/policy_drawer/compliance_frameworks_toggle_list.vue
@@ -77,7 +77,6 @@ export default {
         :background-color="item.color"
         :description="item.description"
         :title="item.name"
-        size="sm"
       />
     </div>
 
diff --git a/ee/app/assets/javascripts/security_orchestration/components/policy_editor/scope/compliance_framework_dropdown.vue b/ee/app/assets/javascripts/security_orchestration/components/policy_editor/scope/compliance_framework_dropdown.vue
index 30a1cdfd9635c03ef2b8bc9d67104742956c4fe3..15f7eeba9ded70cd7e320a75d62ac65e60d3d8e0 100644
--- a/ee/app/assets/javascripts/security_orchestration/components/policy_editor/scope/compliance_framework_dropdown.vue
+++ b/ee/app/assets/javascripts/security_orchestration/components/policy_editor/scope/compliance_framework_dropdown.vue
@@ -238,7 +238,6 @@ export default {
         <template #list-item="{ item }">
           <div :id="item.value">
             <gl-label
-              size="sm"
               :background-color="item.color"
               :description="$options.i18n.editFramework"
               :title="item.text"
diff --git a/ee/app/helpers/ee/labels_helper.rb b/ee/app/helpers/ee/labels_helper.rb
index 84028a1778120d156fb13ba40d37dc3ce542aa11..e9ce1d2fd50d0c7ae043d33e281cf896b006a3e1 100644
--- a/ee/app/helpers/ee/labels_helper.rb
+++ b/ee/app/helpers/ee/labels_helper.rb
@@ -22,13 +22,11 @@ def render_colored_label(label, suffix: '')
       )
     end
 
-    def wrap_label_html(label_html, small:, label:)
+    def wrap_label_html(label_html, label:)
       return super unless label.scoped_label?
 
       wrapper_classes = %w[gl-label gl-label-scoped]
-      wrapper_classes << 'gl-label-sm' if small
-
-      border_width = small ? '1px' : '2px'
+      border_width = '2px'
 
       %(<span class="#{wrapper_classes.join(' ')}" style="--label-inset-border: inset 0 0 0 #{border_width} #{ERB::Util.html_escape(label.color)}; color: #{ERB::Util.html_escape(label.color)}">#{label_html}</span>).html_safe
     end
diff --git a/ee/app/views/projects/issues/_health_status.html.haml b/ee/app/views/projects/issues/_health_status.html.haml
index ae63ece5ed3572475f27e5a0414a3f282184cac8..3daf5a46970d58d9f4e3afc3558621546d9b5967 100644
--- a/ee/app/views/projects/issues/_health_status.html.haml
+++ b/ee/app/views/projects/issues/_health_status.html.haml
@@ -6,6 +6,6 @@
 - if issue.health_status
   .gl-ml-2.health-status.gl-display-inline-flex.gl-align-items-center
     &nbsp;
-    %span.gl-label.gl-label-text-dark.gl-label-sm{ data: { testid: "health-status" }, class: status_classes[issue.health_status] }
+    %span.gl-label.gl-label-text-dark{ data: { testid: "health-status" }, class: status_classes[issue.health_status] }
       %span.gl-label-text
         = status_text[issue.health_status]
diff --git a/ee/spec/frontend/compliance_dashboard/components/violations_report/drawer_sections/project_spec.js b/ee/spec/frontend/compliance_dashboard/components/violations_report/drawer_sections/project_spec.js
index 28339750ffc82aaf27e1c374c35ddcabed86815b..b4f0d893a566827c0f4a3b40bdee7c304173b66c 100644
--- a/ee/spec/frontend/compliance_dashboard/components/violations_report/drawer_sections/project_spec.js
+++ b/ee/spec/frontend/compliance_dashboard/components/violations_report/drawer_sections/project_spec.js
@@ -87,7 +87,6 @@ describe('Project component', () => {
       expect(findComplianceFrameworkBadge().props()).toMatchObject({
         framework: { color, description, name },
         showDefault: false,
-        size: 'sm',
       });
     });
   });
diff --git a/ee/spec/frontend/groups/components/group_item_spec.js b/ee/spec/frontend/groups/components/group_item_spec.js
index 373732ed25ea84a70df7a62e2363a675eee02ae9..692e31a744485df980708a8e8c7880c8aa741458 100644
--- a/ee/spec/frontend/groups/components/group_item_spec.js
+++ b/ee/spec/frontend/groups/components/group_item_spec.js
@@ -40,7 +40,6 @@ describe('GroupItemComponent', () => {
       expect(findComplianceFrameworkBadge().props()).toMatchObject({
         framework: mockChildren[1].complianceFramework,
         showEdit: false,
-        size: 'sm',
       });
     });
   });
diff --git a/ee/spec/helpers/ee/labels_helper_spec.rb b/ee/spec/helpers/ee/labels_helper_spec.rb
index 4fea1b821d88f3029c470abf4ee516a646f4f72f..cdfb7927013b46df3ae1729257937d37882beb66 100644
--- a/ee/spec/helpers/ee/labels_helper_spec.rb
+++ b/ee/spec/helpers/ee/labels_helper_spec.rb
@@ -30,7 +30,7 @@
       end
 
       it 'html-escapes the label color' do
-        expect(wrap_label_html('xss', label: xss_label, small: false)).to include(html_escape(xss_label.color))
+        expect(wrap_label_html('xss', label: xss_label)).to include(html_escape(xss_label.color))
           .and include('color:')
       end
     end
@@ -45,7 +45,7 @@
       end
 
       it 'does not include the color' do
-        expect(wrap_label_html('xss', label: xss_label, small: false)).not_to include('color:')
+        expect(wrap_label_html('xss', label: xss_label)).not_to include('color:')
       end
     end
   end
diff --git a/ee/spec/views/search/results/_issuable.html.haml_spec.rb b/ee/spec/views/search/results/_issuable.html.haml_spec.rb
index d8c1c8e68fb06acbafc9f6fc80106822293e49ed..b96d885ce993832f6eee16e9d5b7a500915a3cc6 100644
--- a/ee/spec/views/search/results/_issuable.html.haml_spec.rb
+++ b/ee/spec/views/search/results/_issuable.html.haml_spec.rb
@@ -42,8 +42,8 @@
     it "displays the label" do
       render partial: 'search/results/issuable', locals: { issuable: issue }
 
-      expect(rendered).to have_selector('.gl-label.gl-label-scoped.gl-label-sm', text: 'foobar')
-      expect(rendered).to have_selector('.gl-label.gl-label-sm', text: label.title)
+      expect(rendered).to have_selector('.gl-label.gl-label-scoped', text: 'foobar')
+      expect(rendered).to have_selector('.gl-label', text: label.title)
     end
   end
 end
diff --git a/lib/banzai/filter/references/label_reference_filter.rb b/lib/banzai/filter/references/label_reference_filter.rb
index 170fdd92c677e6a97b710d48e6384bde603e7a06..310b24df1fc365b66ac972bf652d5effce2ab3e8 100644
--- a/lib/banzai/filter/references/label_reference_filter.rb
+++ b/lib/banzai/filter/references/label_reference_filter.rb
@@ -122,7 +122,7 @@ def object_link_text(object, matches)
 
         def wrap_link(link, label)
           presenter = label.present(issuable_subject: project || group)
-          LabelsHelper.wrap_label_html(link, small: true, label: presenter)
+          LabelsHelper.wrap_label_html(link, label: presenter)
         end
 
         def full_path_ref?(matches)
diff --git a/spec/frontend/content_editor/test_constants.js b/spec/frontend/content_editor/test_constants.js
index 255a7104eafaecd309381a5fe74f0f3d21759ff5..b56a6272de665716e3a3858ad2ed090e08c9b911 100644
--- a/spec/frontend/content_editor/test_constants.js
+++ b/spec/frontend/content_editor/test_constants.js
@@ -46,7 +46,7 @@ export const RESOLVED_EPIC_HTML =
   '<p data-sourcepos="1:1-1:11" dir="auto"><a href="/groups/gitlab-org/-/epics/1" data-reference-type="epic" data-original="&amp;amp;1" data-link="false" data-link-reference="false" data-group="9970" data-epic="1" data-container="body" data-placement="top" title="Approvals in merge request list" class="gfm gfm-epic has-tooltip">&amp;1</a> <a href="/groups/gitlab-org/-/epics/1" data-reference-type="epic" data-original="&amp;amp;1+" data-link="false" data-link-reference="false" data-group="9970" data-epic="1" data-reference-format="+" data-container="body" data-placement="top" title="Approvals in merge request list" class="gfm gfm-epic has-tooltip">Approvals in merge request list (&amp;1)</a> <a href="/groups/gitlab-org/-/epics/1" data-reference-type="epic" data-original="&amp;amp;1+s" data-link="false" data-link-reference="false" data-group="9970" data-epic="1" data-reference-format="+s" data-container="body" data-placement="top" title="Approvals in merge request list" class="gfm gfm-epic has-tooltip">Approvals in merge request list (&amp;1)</a></p>';
 
 export const RESOLVED_LABEL_HTML =
-  '<p data-sourcepos="1:1-1:29" dir="auto"><span class="gl-label gl-label-sm"><a href="/gitlab-org/gitlab-shell/-/issues?label_name=Aquanix" data-reference-type="label" data-original="~Aquanix" data-link="false" data-link-reference="false" data-project="2" data-label="5" data-container="body" data-placement="top" title="" class="gfm gfm-label has-tooltip gl-link gl-label-link"><span class="gl-label-text gl-label-text-light" data-container="body" data-html="true" style="background-color: #e65431">Aquanix</span></a></span> <span class="gl-label gl-label-sm"><a href="/gitlab-org/gitlab-shell/-/issues?label_name=Aquanix" data-reference-type="label" data-original="~Aquanix" data-link="false" data-link-reference="false" data-project="2" data-label="5" data-container="body" data-placement="top" title="" class="gfm gfm-label has-tooltip gl-link gl-label-link"><span class="gl-label-text gl-label-text-light" data-container="body" data-html="true" style="background-color: #e65431">Aquanix</span></a></span>+ <span class="gl-label gl-label-sm"><a href="/gitlab-org/gitlab-shell/-/issues?label_name=Aquanix" data-reference-type="label" data-original="~Aquanix" data-link="false" data-link-reference="false" data-project="2" data-label="5" data-container="body" data-placement="top" title="" class="gfm gfm-label has-tooltip gl-link gl-label-link"><span class="gl-label-text gl-label-text-light" data-container="body" data-html="true" style="background-color: #e65431">Aquanix</span></a></span>+s</p>';
+  '<p data-sourcepos="1:1-1:29" dir="auto"><span class="gl-label"><a href="/gitlab-org/gitlab-shell/-/issues?label_name=Aquanix" data-reference-type="label" data-original="~Aquanix" data-link="false" data-link-reference="false" data-project="2" data-label="5" data-container="body" data-placement="top" title="" class="gfm gfm-label has-tooltip gl-link gl-label-link"><span class="gl-label-text gl-label-text-light" data-container="body" data-html="true" style="background-color: #e65431">Aquanix</span></a></span> <span class="gl-label"><a href="/gitlab-org/gitlab-shell/-/issues?label_name=Aquanix" data-reference-type="label" data-original="~Aquanix" data-link="false" data-link-reference="false" data-project="2" data-label="5" data-container="body" data-placement="top" title="" class="gfm gfm-label has-tooltip gl-link gl-label-link"><span class="gl-label-text gl-label-text-light" data-container="body" data-html="true" style="background-color: #e65431">Aquanix</span></a></span>+ <span class="gl-label"><a href="/gitlab-org/gitlab-shell/-/issues?label_name=Aquanix" data-reference-type="label" data-original="~Aquanix" data-link="false" data-link-reference="false" data-project="2" data-label="5" data-container="body" data-placement="top" title="" class="gfm gfm-label has-tooltip gl-link gl-label-link"><span class="gl-label-text gl-label-text-light" data-container="body" data-html="true" style="background-color: #e65431">Aquanix</span></a></span>+s</p>';
 
 export const RESOLVED_SNIPPET_HTML =
   '<p data-sourcepos="1:1-1:14" dir="auto"><a href="/gitlab-org/gitlab-shell/-/snippets/25" data-reference-type="snippet" data-original="$25" data-link="false" data-link-reference="false" data-project="2" data-snippet="25" data-container="body" data-placement="top" title="test" class="gfm gfm-snippet has-tooltip">$25</a> <a href="/gitlab-org/gitlab-shell/-/snippets/25" data-reference-type="snippet" data-original="$25" data-link="false" data-link-reference="false" data-project="2" data-snippet="25" data-container="body" data-placement="top" title="test" class="gfm gfm-snippet has-tooltip">$25</a>+ <a href="/gitlab-org/gitlab-shell/-/snippets/25" data-reference-type="snippet" data-original="$25" data-link="false" data-link-reference="false" data-project="2" data-snippet="25" data-container="body" data-placement="top" title="test" class="gfm gfm-snippet has-tooltip">$25</a>+s</p>';
diff --git a/spec/helpers/labels_helper_spec.rb b/spec/helpers/labels_helper_spec.rb
index 4877ab1ff03383f4d42758b5c9a0e07a9b37ace3..59fb57aa5ac68c65fddc1b5241c02a2b2b73d2de 100644
--- a/spec/helpers/labels_helper_spec.rb
+++ b/spec/helpers/labels_helper_spec.rb
@@ -327,7 +327,7 @@
     end
 
     it 'does not include the color' do
-      expect(wrap_label_html('xss', label: xss_label, small: false)).not_to include('color:')
+      expect(wrap_label_html('xss', label: xss_label)).not_to include('color:')
     end
   end