diff --git a/packages/calcite-components/src/components/label/label.scss b/packages/calcite-components/src/components/label/label.scss
index 92669675a8d..6aa7bf77cd7 100644
--- a/packages/calcite-components/src/components/label/label.scss
+++ b/packages/calcite-components/src/components/label/label.scss
@@ -50,6 +50,7 @@
   color: var(--calcite-label-text-color, var(--calcite-color-text-1));
 }
 
+:host([layout="block"]),
 :host([layout="default"]) {
   .container {
     @apply flex flex-col;
diff --git a/packages/calcite-components/src/components/label/label.stories.ts b/packages/calcite-components/src/components/label/label.stories.ts
index 7e61f734014..a9eaa4b9613 100644
--- a/packages/calcite-components/src/components/label/label.stories.ts
+++ b/packages/calcite-components/src/components/label/label.stories.ts
@@ -76,6 +76,18 @@ export const simple = (): string => html`
       Add Notes
       <calcite-text-area></calcite-text-area>
     </calcite-label>
+    <calcite-label layout="block">
+      layout="block"
+      <calcite-input-text placeholder="I'm below the label"></calcite-input-text>
+    </calcite-label>
+    <calcite-label layout="inline">
+      layout="inline"
+      <calcite-input-text placeholder="I'm next to the label"></calcite-input-text>
+    </calcite-label>
+    <calcite-label layout="inline-space-between">
+      layout="inline-space-between"
+      <calcite-input-text placeholder="I'm right aligned"></calcite-input-text>
+    </calcite-label>
   </div>
 `;
 
diff --git a/packages/calcite-components/src/components/label/label.tsx b/packages/calcite-components/src/components/label/label.tsx
index 66c7f828fb8..c209a4cf2d6 100644
--- a/packages/calcite-components/src/components/label/label.tsx
+++ b/packages/calcite-components/src/components/label/label.tsx
@@ -32,8 +32,9 @@ export class Label extends LitElement {
   /** Specifies the `id` of the component the label is bound to. Use when the component the label is bound to does not reside within the component. */
   @property({ reflect: true }) for: string;
 
-  /** Defines the layout of the label in relation to the component. Use `"inline"` positions to wrap the label and component on the same line. */
-  @property({ reflect: true }) layout: "inline" | "inline-space-between" | "default" = "default";
+  /** Defines the layout of the label in relation to the component. Use `"inline"` positions to wrap the label and component on the same line.  [Deprecated] The `"default"` value is deprecated, use `"block"` instead. */
+  @property({ reflect: true }) layout: "block" | "inline" | "inline-space-between" | "default" =
+    "default";
 
   /** Specifies the size of the component. */
   @property({ reflect: true }) scale: Scale = "m";