diff --git a/changelogs/unreleased/43702-update-label-dropdown-wording.yml b/changelogs/unreleased/43702-update-label-dropdown-wording.yml
new file mode 100644
index 00000000000..97100ec89de
--- /dev/null
+++ b/changelogs/unreleased/43702-update-label-dropdown-wording.yml
@@ -0,0 +1,5 @@
+---
+title: Update wording to specify create/manage project vs group labels in labels dropdown
+merge_request: 17640
+author:
+type: changed