diff --git a/app/javascript/dashboard/components/ui/Label.vue b/app/javascript/dashboard/components/ui/Label.vue
index 83e55b040..eaacebe55 100644
--- a/app/javascript/dashboard/components/ui/Label.vue
+++ b/app/javascript/dashboard/components/ui/Label.vue
@@ -48,6 +48,10 @@ export default {
       type: String,
       default: '',
     },
+    color: {
+      type: String,
+      default: '',
+    },
     colorScheme: {
       type: String,
       default: '',
@@ -55,7 +59,7 @@ export default {
   },
   computed: {
     textColor() {
-      return getContrastingTextColor(this.bgColor);
+      return this.color || getContrastingTextColor(this.bgColor);
     },
     labelClass() {
       return `label ${this.colorScheme} ${this.small ? 'small' : ''}`;
@@ -97,6 +101,9 @@ export default {
 
   &.small {
     font-size: var(--font-size-micro);
+    padding: var(--space-micro) var(--space-smaller);
+    line-height: 1.2;
+    letter-spacing: 0.15px;
   }
 
   .label--icon {
diff --git a/app/javascript/dashboard/routes/dashboard/conversation/labels/LabelBox.vue b/app/javascript/dashboard/routes/dashboard/conversation/labels/LabelBox.vue
index bf0bd3692..795917180 100644
--- a/app/javascript/dashboard/routes/dashboard/conversation/labels/LabelBox.vue
+++ b/app/javascript/dashboard/routes/dashboard/conversation/labels/LabelBox.vue
@@ -16,7 +16,8 @@
           :title="label.title"
           :description="label.description"
           :show-close="true"
-          :bg-color="label.color"
+          :bg-color="getBleachBgOfHexColor(label.color)"
+          :color="getShadeOfHexColor(label.color)"
           @click="removeLabelFromConversation"
         />
 
@@ -47,6 +48,10 @@ import LabelDropdown from 'shared/components/ui/label/LabelDropdown';
 import AddLabel from 'shared/components/ui/dropdown/AddLabel';
 import { mixin as clickaway } from 'vue-clickaway';
 import conversationLabelMixin from 'dashboard/mixins/conversation/labelMixin';
+import {
+  getShadeOfHexColor,
+  getBleachBgOfHexColor,
+} from 'shared/helpers/ColorHelper';
 
 export default {
   components: {
@@ -77,6 +82,8 @@ export default {
     }),
   },
   methods: {
+    getShadeOfHexColor,
+    getBleachBgOfHexColor,
     toggleLabels() {
       this.showSearchDropdownLabel = !this.showSearchDropdownLabel;
     },
diff --git a/app/javascript/shared/assets/stylesheets/colors.scss b/app/javascript/shared/assets/stylesheets/colors.scss
index 5784bb6bf..5fcf14754 100644
--- a/app/javascript/shared/assets/stylesheets/colors.scss
+++ b/app/javascript/shared/assets/stylesheets/colors.scss
@@ -7,7 +7,7 @@
   --w-75: #D6EBFF;
   --w-100: #C2E1FF;
   --w-200: #99CEFF;
-  --w-300: ##70BAFF;
+  --w-300: #70BAFF;
   --w-400: #47A6FF;
   --w-500: #1F93FF;
   --w-600: #1976CC;
diff --git a/app/javascript/shared/helpers/ColorHelper.js b/app/javascript/shared/helpers/ColorHelper.js
new file mode 100644
index 000000000..315a63913
--- /dev/null
+++ b/app/javascript/shared/helpers/ColorHelper.js
@@ -0,0 +1,59 @@
+export const hexToHSLAsArray = H => {
+  // Convert hex to RGB first
+  let r = 0;
+  let g = 0;
+  let b = 0;
+  if (H.length === 4) {
+    r = '0x' + H[1] + H[1];
+    g = '0x' + H[2] + H[2];
+    b = '0x' + H[3] + H[3];
+  } else if (H.length === 7) {
+    r = '0x' + H[1] + H[2];
+    g = '0x' + H[3] + H[4];
+    b = '0x' + H[5] + H[6];
+  }
+  // Then to HSL
+  r /= 255;
+  g /= 255;
+  b /= 255;
+  let cmin = Math.min(r, g, b);
+  let cmax = Math.max(r, g, b);
+  let delta = cmax - cmin;
+  let h = 0;
+  let s = 0;
+  let l = 0;
+
+  if (delta === 0) h = 0;
+  else if (cmax === r) h = ((g - b) / delta) % 6;
+  else if (cmax === g) h = (b - r) / delta + 2;
+  else h = (r - g) / delta + 4;
+
+  h = Math.round(h * 60);
+
+  if (h < 0) h += 360;
+
+  l = (cmax + cmin) / 2;
+  s = delta === 0 ? 0 : delta / (1 - Math.abs(2 * l - 1));
+  s = +(s * 100).toFixed(1);
+  l = +(l * 100).toFixed(1);
+
+  return [h, s, l];
+};
+
+export const hexToHSL = hex => {
+  const [h, s, l] = hexToHSLAsArray(hex);
+  return 'hsl(' + h + ',' + s + '%,' + l + '%)';
+};
+
+export const getTextShadeOfHexColor = (hex, shade = 40) => {
+  const [h, s, l] = hexToHSLAsArray(hex);
+  const newL = Math.min(22, Math.max(l - shade, 28));
+
+  return 'hsl(' + h + ',' + s + '%,' + newL + '%)';
+};
+
+export const getBleachBgOfHexColor = (hex, bleach = 35) => {
+  const [h, s, l] = hexToHSLAsArray(hex);
+  const newL = Math.max(94, Math.min(l + bleach, 96));
+  return 'hsl(' + h + ',' + s + '%,' + newL + '%)';
+};
diff --git a/app/javascript/shared/helpers/specs/ColorHelper.spec.js b/app/javascript/shared/helpers/specs/ColorHelper.spec.js
new file mode 100644
index 000000000..acd67a638
--- /dev/null
+++ b/app/javascript/shared/helpers/specs/ColorHelper.spec.js
@@ -0,0 +1,34 @@
+import {
+  hexToHSLAsArray,
+  hexToHSL,
+  getTextShadeOfHexColor,
+  getBleachBgOfHexColor,
+} from '../ColorHelper';
+
+describe('#hexToHSLAsArray', () => {
+  it('should return correct color conversion for 6 digit hex', () => {
+    expect(hexToHSLAsArray('#ffffff')).toEqual([0, 0, 100]);
+  });
+
+  it('should return correct color conversion for 3 digit hex', () => {
+    expect(hexToHSLAsArray('#fff')).toEqual([0, 0, 100]);
+  });
+});
+
+describe('#hexToHSL', () => {
+  it('should return correct color conversion for 6 digit hex to hsl string', () => {
+    expect(hexToHSL('#ffffff')).toEqual('hsl(0,0%,100%)');
+  });
+});
+
+describe('#getTextShadeOfHexColor', () => {
+  it('should return correct color shade for 6 digit hex to hsl string', () => {
+    expect(getTextShadeOfHexColor('#ffffff')).toEqual('hsl(0,0%,22%)');
+  });
+});
+
+describe('#getBleachBgOfHexColor', () => {
+  it('should return correct color shade for 6 digit hex to hsl string', () => {
+    expect(getBleachBgOfHexColor('#ffffff')).toEqual('hsl(0,0%,96%)');
+  });
+});