diff --git a/app/assets/javascripts/sidebar/components/labels/labels_select_vue/label_item.vue b/app/assets/javascripts/sidebar/components/labels/labels_select_vue/label_item.vue
index 2960298dca8560beaa1b2d8ca27ff11d85b325f8..9df03a4d7f8442716ba0ba61b15a3037842da4d7 100644
--- a/app/assets/javascripts/sidebar/components/labels/labels_select_vue/label_item.vue
+++ b/app/assets/javascripts/sidebar/components/labels/labels_select_vue/label_item.vue
@@ -31,7 +31,7 @@ export default {
     const { label, highlight, isLabelSet, isLabelIndeterminate } = props;
 
     const labelColorBox = h('span', {
-      class: 'dropdown-label-box gl-flex-shrink-0 gl-top-0 gl-absolute',
+      class: 'dropdown-label-box gl-mr-2',
       style: {
         backgroundColor: label.color,
       },
diff --git a/app/assets/javascripts/sidebar/components/labels/labels_select_widget/dropdown_contents_labels_view.vue b/app/assets/javascripts/sidebar/components/labels/labels_select_widget/dropdown_contents_labels_view.vue
index e664d6b4bd6fd8744f9cceb6bc116c44a76a81a7..dce80af8a5ead166c25d054768a223d9e8b637bc 100644
--- a/app/assets/javascripts/sidebar/components/labels/labels_select_widget/dropdown_contents_labels_view.vue
+++ b/app/assets/javascripts/sidebar/components/labels/labels_select_widget/dropdown_contents_labels_view.vue
@@ -154,7 +154,6 @@ export default {
             v-for="(label, index) in visibleLabels"
             :key="label.id"
             :is-checked="isLabelSelected(label)"
-            is-check-centered
             is-check-item
             :active="shouldHighlightFirstItem && index === 0"
             active-class="is-focused"
diff --git a/app/assets/javascripts/sidebar/components/labels/labels_select_widget/label_item.vue b/app/assets/javascripts/sidebar/components/labels/labels_select_widget/label_item.vue
index 19024692bdf2269d7a72b57f23802351a97aab2f..4ce2644262aa8282e41707177aae4a5e5470024a 100644
--- a/app/assets/javascripts/sidebar/components/labels/labels_select_widget/label_item.vue
+++ b/app/assets/javascripts/sidebar/components/labels/labels_select_widget/label_item.vue
@@ -10,9 +10,9 @@ export default {
 </script>
 
 <template>
-  <div class="gl-display-flex gl-align-items-center gl-word-break-word gl-relative gl-pl-4">
+  <div class="gl-display-flex gl-word-break-word">
     <span
-      class="dropdown-label-box gl-flex-shrink-0 gl-top-0 gl-absolute"
+      class="dropdown-label-box gl-flex-shrink-0 gl-top-0 gl-mr-3"
       :style="{ 'background-color': label.color }"
       data-testid="label-color-box"
     ></span>
diff --git a/app/assets/stylesheets/framework/dropdowns.scss b/app/assets/stylesheets/framework/dropdowns.scss
index 7cb1fc293bdfdc89dd96ccbd4fd6610bfda45d36..884cb70cb9fcc19e03725a51bebbcaca8878b2ce 100644
--- a/app/assets/stylesheets/framework/dropdowns.scss
+++ b/app/assets/stylesheets/framework/dropdowns.scss
@@ -718,11 +718,13 @@
 }
 
 .dropdown-label-box {
-  top: 0;
-  left: 0;
-  height: 100%;
-  width: $gl-spacing-scale-2;
+  margin-right: $gl-spacing-scale-3;
+  margin-top: $gl-spacing-scale-2;
+  display: inline-block;
+  width: $gl-spacing-scale-5;
+  height: $gl-spacing-scale-3;
   border-radius: $border-radius-base;
+  border: 1px solid var(--white, $white);
 }
 
 .git-revision-dropdown {