In the Designer, you can set the Label Layout option in the Style Rules pane, in order to lay out the labels of nodes and links so that they do not overlap and to display the labels outside the nodes. You can specify label layout for either nodes or links, or for both.

If you open a project with a style sheet that enables label layout in the Designer, the labels of nodes and/or links are laid out as soon as the style sheet is loaded.

Please note that the labels of nodes and links have a position which you can customize in the Styling Customizer for nodes and links respectively. When you enable the Label Layout option, it takes precedence over the positioning of the labels specified in the nodes and links styling customizers.

If you need to customize the default behavior of the label layout algorithm, you can select Label Layout under Options and set properties in the Styling Customizer.

The most common properties to use are those in the Control and Geometry tabs.