Labels are unfortunately required to create order out of chaos. As an example consider Carl Linnaeus and his classification system of living things grouped together by similar or obvious physical traits.
Thus we have the Animal and Plant kingdoms subclassified right down to the lowest level of individual species. These are labels without which how could we know the differences and relationships between a Tiger and a lion? Or a banana and a jellyfish? And how they fit in within the scheme of things?
I guess the LGBTQetc. community also feels the need to label us based on our observed behaviours and shared or different characteristics, so we have some understanding of where we fit in relative to others along the spectrum. The community has found itself caught in the labelling trap.
Unfortunately this has resulted into labels proliferating because of each minor variation. This classification could end up as complex as say the Plant Kingdom with its many subdivisions. An exaggeration obviously but it illustrates the point.