diff --git a/.changeset/thin-countries-happen.md b/.changeset/thin-countries-happen.md
new file mode 100644
index 0000000000..8408813aa7
--- /dev/null
+++ b/.changeset/thin-countries-happen.md
@@ -0,0 +1,5 @@
+---
+"@primer/view-components": patch
+---
+
+Updating label component to not always have large
diff --git a/app/components/primer/label_component.rb b/app/components/primer/label_component.rb
index 75cbe5f824..b79c33d1d5 100644
--- a/app/components/primer/label_component.rb
+++ b/app/components/primer/label_component.rb
@@ -77,7 +77,8 @@ def initialize(tag: DEFAULT_TAG, scheme: DEFAULT_SCHEME, size: DEFAULT_SIZE, inl
 
       @variant = fetch_or_fallback(VARIANT_OPTIONS, variant, nil, deprecated_values: DEPRECATED_VARIANT_OPTIONS)
       @scheme = fetch_or_fallback(SCHEME_OPTIONS, scheme, DEFAULT_SCHEME, deprecated_values: DEPRECATED_SCHEME_OPTIONS)
-      @size = fetch_or_fallback(SIZE_OPTIONS, size) || @variant == :large ? :large : nil || DEFAULT_SIZE
+      @size = fetch_or_fallback(SIZE_OPTIONS, size, DEFAULT_SIZE)
+      @size = :large if @variant == :large
       @inline = inline || @variant == :inline
 
       @system_arguments[:tag] = fetch_or_fallback(TAG_OPTIONS, tag, DEFAULT_TAG)
diff --git a/lookbook/Gemfile.lock b/lookbook/Gemfile.lock
index d153255735..20536a03c5 100644
--- a/lookbook/Gemfile.lock
+++ b/lookbook/Gemfile.lock
@@ -1,11 +1,11 @@
 PATH
   remote: ..
   specs:
-    primer_view_components (0.0.86)
+    primer_view_components (0.0.88)
       actionview (>= 5.0.0)
       activesupport (>= 5.0.0)
       octicons (>= 17.0.0)
-      view_component (>= 2.0.0, < 3.0)
+      view_component (>= 2.57.0, < 3.0)
 
 GEM
   remote: https://rubygems.org/
diff --git a/test/components/label_component_test.rb b/test/components/label_component_test.rb
index 253be7690e..cb2ad70c48 100644
--- a/test/components/label_component_test.rb
+++ b/test/components/label_component_test.rb
@@ -11,6 +11,12 @@ def test_renders_content
     assert_text("private")
   end
 
+  def test_renders_only_label_class_by_default
+    render_inline(Primer::LabelComponent.new) { "label" }
+
+    assert_selector("[class='Label']")
+  end
+
   def test_falls_back_when_tag_isnt_valid
     without_fetch_or_fallback_raises do
       render_inline(Primer::LabelComponent.new(tag: :h1))
diff --git a/test/previews/primer/label_component_preview.rb b/test/previews/primer/label_component_preview.rb
new file mode 100644
index 0000000000..da898acdc5
--- /dev/null
+++ b/test/previews/primer/label_component_preview.rb
@@ -0,0 +1,15 @@
+# frozen_string_literal: true
+
+module Primer
+  # @label LabelComponent
+  class LabelComponentPreview < ViewComponent::Preview
+    # @label Default Options
+    #
+    # @param size [Symbol] select [medium, large]
+    # @param tag [Symbol] select [span, summary, a, div]
+    # @param inline [Boolean] toggle
+    def default(size: :medium, tag: :span, inline: false)
+      render(Primer::LabelComponent.new(tag: tag, size: size, inline: inline)) { "Label" }
+    end
+  end
+end