Has anyone managed to add labels to folders in Google Drive?

[roniery]

I recently noticed that you can add labels to folders – someone on Reddit mentioned this:

“Labels can now also be applied to folders. … In the UI it still says that this is not possible, but you can now add a label to a folder.”

However, this isn't documented in the official help—there’s no menu or obvious way to do it.

• Is this feature actually available?

• How do we enable or use labels on folders?

• Any details on limitations (e.g. only single folder, only in certain Workspace tiers)?

Thanks in advance!