diff --git a/mod/label/db/upgrade.php b/mod/label/db/upgrade.php
index 482149fb87f..d4623bd5890 100644
--- a/mod/label/db/upgrade.php
+++ b/mod/label/db/upgrade.php
@@ -69,5 +69,31 @@ function xmldb_label_upgrade($oldversion) {
     // Automatically generated Moodle v4.1.0 release upgrade line.
     // Put any upgrade step following this.
 
+    if ($oldversion < 2022112801) {
+        $prevlang = force_current_language($CFG->lang);
+        $labels = $DB->get_recordset('label');
+        foreach ($labels as $label) {
+            // Make sure that all labels have now the same name according to the new convention.
+            // Note this is the same (and duplicated) code as in get_label_name as we cannot call any API function
+            // during upgrade.
+            $name = html_to_text(format_string($label->intro, true));
+            $name = preg_replace('/@@PLUGINFILE@@\/[[:^space:]]+/i', '', $name);
+            // Remove double space and also nbsp; characters.
+            $name = preg_replace('/\s+/u', ' ', $name);
+            $name = trim($name);
+            if (core_text::strlen($name) > LABEL_MAX_NAME_LENGTH) {
+                $name = core_text::substr($name, 0, LABEL_MAX_NAME_LENGTH) . "...";
+            }
+            if (empty($name)) {
+                $name = get_string('modulename', 'label');
+            }
+            $label->name = $name;
+            $DB->update_record('label', $label);
+        }
+        $labels->close();
+        force_current_language($prevlang);
+        upgrade_mod_savepoint(true, 2022112801, 'label');
+    }
+
     return true;
 }
diff --git a/mod/label/lib.php b/mod/label/lib.php
index 03c2f712584..1e7d194d1a2 100644
--- a/mod/label/lib.php
+++ b/mod/label/lib.php
@@ -34,9 +34,13 @@ define("LABEL_MAX_NAME_LENGTH", 50);
  * @return string
  */
 function get_label_name($label) {
-    $name = strip_tags(format_string($label->intro,true));
+    $name = html_to_text(format_string($label->intro, true));
+    $name = preg_replace('/@@PLUGINFILE@@\/[[:^space:]]+/i', '', $name);
+    // Remove double space and also nbsp; characters.
+    $name = preg_replace('/\s+/u', ' ', $name);
+    $name = trim($name);
     if (core_text::strlen($name) > LABEL_MAX_NAME_LENGTH) {
-        $name = core_text::substr($name, 0, LABEL_MAX_NAME_LENGTH)."...";
+        $name = core_text::substr($name, 0, LABEL_MAX_NAME_LENGTH) . "...";
     }
 
     if (empty($name)) {
diff --git a/mod/label/tests/lib_test.php b/mod/label/tests/lib_test.php
index 36d58202954..78811743d0a 100644
--- a/mod/label/tests/lib_test.php
+++ b/mod/label/tests/lib_test.php
@@ -204,6 +204,95 @@ class lib_test extends \advanced_testcase {
         $this->assertNull($actionevent);
     }
 
+    /**
+     * Check label name with different content inserted in the label intro.
+     *
+     * @param string $labelcontent
+     * @param string $labelformat
+     * @param string $expectedlabelname
+     * @return void
+     * @covers       \get_label_name
+     * @dataProvider label_get_name_data_provider
+     */
+    public function test_label_get_label_name(string $labelcontent, string $labelformat, string $expectedlabelname): void {
+        $course = $this->getDataGenerator()->create_course();
+        // When creating the module, get_label_name is called and fills label->name.
+        $label = $this->getDataGenerator()->create_module('label', [
+                'course' => $course->id,
+                'intro' => $labelcontent,
+                'introformat' => $labelformat
+            ]
+        );
+        $this->assertEquals($expectedlabelname, $label->name);
+    }
+
+    /**
+     * Dataprovider for test_label_get_label_name
+     *
+     * @return array
+     */
+    public function label_get_name_data_provider(): array {
+        return [
+            'simple' => [
+                'content' => '<p>Simple textual content<p>',
+                'format' => FORMAT_HTML,
+                'expected' => 'Simple textual content'
+            ],
+            'empty' => [
+                'content' => '',
+                'format' => FORMAT_HTML,
+                'expected' => 'Test label 1'
+            ],
+            'withaudiocontent' => [
+                'content' => '<p>Test with audio</p>
+<p>&nbsp; &nbsp;<audio controls="controls">
+<source src="@@PLUGINFILE@@/moodle-hit-song.mp3">
+@@PLUGINFILE@@/moodle-hit-song.mp3
+</audio>&nbsp;</p>',
+                'format' => FORMAT_HTML,
+                'expected' => 'Test with audio'
+            ],
+            'withvideo' => [
+                'content' => '<p>Test video</p>
+<p>&nbsp;<video controls="controls">
+        <source src="https://www.youtube.com/watch?v=xxxyy">
+    https://www.youtube.com/watch?v=xxxyy
+</video>&nbsp;</p>',
+                'format' => FORMAT_HTML,
+                'expected' => 'Test video https://www.youtube.com/watch?v=xxxyy'
+            ],
+            'with video trimming' => [
+                'content' => '<p>Test with video to be trimmed</p>
+<p>&nbsp;<video controls="controls">
+        <source src="https://www.youtube.com/watch?v=xxxyy">
+    https://www.youtube.com/watch?v=xxxyy
+</video>&nbsp;</p>',
+                'format' => FORMAT_HTML,
+                'expected' => 'Test with video to be trimmed https://www.youtube....'
+            ],
+            'with plain text' => [
+                'content' => 'Content with @@PLUGINFILE@@/moodle-hit-song.mp3 nothing',
+                'format' => FORMAT_HTML,
+                'expected' => 'Content with nothing'
+            ],
+            'with several spaces' => [
+                'content' => "Content with @@PLUGINFILE@@/moodle-hit-song.mp3 \r &nbsp; several spaces",
+                'format' => FORMAT_HTML,
+                'expected' => 'Content with several spaces'
+            ],
+            'empty spaces' => [
+                'content' => ' &nbsp; ',
+                'format' => FORMAT_HTML,
+                'expected' => 'Text and media area'
+            ],
+            'only html' => [
+                'content' => '<audio controls="controls"><source src=""></audio>',
+                'format' => FORMAT_HTML,
+                'expected' => 'Text and media area'
+            ]
+        ];
+    }
+
     /**
      * Creates an action event.
      *
diff --git a/mod/label/version.php b/mod/label/version.php
index 3772714ff3d..d974ea91f3e 100644
--- a/mod/label/version.php
+++ b/mod/label/version.php
@@ -24,7 +24,7 @@
 
 defined('MOODLE_INTERNAL') || die();
 
-$plugin->version   = 2022112800;       // The current module version (Date: YYYYMMDDXX).
+$plugin->version   = 2022112801;       // The current module version (Date: YYYYMMDDXX).
 $plugin->requires  = 2022111800;    // Requires this Moodle version.
 $plugin->component = 'mod_label'; // Full name of the plugin (used for diagnostics)
 $plugin->cron      = 0;