diff --git a/doc/user/project/labels.md b/doc/user/project/labels.md
index 8869d85bbe0..63ab02541bd 100644
--- a/doc/user/project/labels.md
+++ b/doc/user/project/labels.md
@@ -32,11 +32,13 @@ An issue, epic, or merge request cannot have two scoped labels with the same key
 For example, if an issue is already labeled `priority::3` and you apply the label `priority::2` to it,
 `priority::3` is automatically removed.
 
-NOTE: **Note:**
-In the case where labels have multiple sets of `::`, the longest path is used
-for mutual exclusivity check. For example, for label `some::key::value` we
-would check for exclusivity on `some::key::` level instead of `some::` - this
-allows finer grained organization.
+### Labels with multiple colon pairs
+
+If labels have multiple instances of `::`, the longest path from left to right, until the last `::`, is considered the "key" or the "scope".
+
+For example, `nested::key1::value1` and `nested::key1::value2` cannot both exist on the same issue. Adding the latter label will automatically remove the former due to the shared scope of `nested::key1`.
+
+`nested::key1::value1` and `nested::key2::value1` can both exist on the same issue, as these are considered to use two different label scopes, `nested::key1` and `nested::key2`.
 
 ### Workflows with scoped labels **[PREMIUM]**