Sets classification label on the specified list
command: spo list label set -u|--webUrl <webUrl> -l|--listId [listId] -t|--listTitle [listTitle] --label <label> --syncToItems --blockDeletion --blockEdit
For more information see: https://docs.microsoft.com/en-us/powershell/module/sharepoint-pnp/set-pnplabel?view=sharepoint-ps
@waldekmastykarz do you know if there is a rest for that or we have to do it the old school way?
Assign me please.
I haven't looked at what API is exactly called by PowerShell, but once you do, you could check _api/$metadata for anything alike
Hey @waldekmastykarz , I will add listUrl (server relative or web relative) as param. Are you ok?
Hey @waldekmastykarz, I will also rename the --blockDeletion to --blockDelete because this is how it is being specified in the $metadata. Are you ok?

@waldekmastykarz , the PR is submitted. One thing I am not certain of is how blockEdit and blockDelete work. I am calling the right REST with the right payload, but I was not able to make it work as per your description up in the command. I do not know how it is suppose to work either, but I was not able to make it work with the PnP PowerShell command either.
I might be doing something wrong. Could you please test and let me know if we should change something.
I had a look at the API call and seemed all fine. If there is an API issue, then we should circle it back to Microsoft.