Click the square/arrow to the right of any label, there are a plethora of options, including when and why a label should be shown at all costs. Frankly, the label functionality that exists now, in the redesign, is amazing.
Ok, upon closer inspection of your original screenshot, it appears you need to hover the padding-area between "Chat" and the border line above -- a separator between labels and the chat modules. You should notice a resize cursor and an ellipsis icon; this separator is movable and reveal more of your labels, without having to hover the labels area to reveal them.
Important tip based on what I see in this thread from multiple people:
If the response is "oh, no problem, just try to find this button, or hover on this very small area to trigger a non-obvious behavior"... we're probably not talking about good UX.
