diff --git a/app/assets/stylesheets/pages/labels.scss b/app/assets/stylesheets/pages/labels.scss
index cbd009ccd07678826c2250d6ef1de6641041135f..9bac6d463551c2cbb4190e9d4cdc073a11d2f574 100644
--- a/app/assets/stylesheets/pages/labels.scss
+++ b/app/assets/stylesheets/pages/labels.scss
@@ -140,10 +140,6 @@
     color: $gray-light;
   }
 
-  .label-type {
-    opacity: 0.3;
-  }
-
   li:hover {
     .draggable-handler {
       display: inline-block;
@@ -152,11 +148,7 @@
   }
 }
 
-.group-labels + .project-labels {
-  margin-top: 30px;
-}
-
-.group-labels, .project-labels {
+.other-labels {
   .remove-priority {
     display: none;
   }
diff --git a/app/controllers/projects/labels_controller.rb b/app/controllers/projects/labels_controller.rb
index 919c6f239cbe719b57b29ed4ae6c561bbb5a2b64..3154a4435f667bdfe4e2547df0d29786b95b2535 100644
--- a/app/controllers/projects/labels_controller.rb
+++ b/app/controllers/projects/labels_controller.rb
@@ -3,7 +3,7 @@ class Projects::LabelsController < Projects::ApplicationController
 
   before_action :module_enabled
   before_action :label, only: [:edit, :update, :destroy]
-  before_action :labels, only: [:index]
+  before_action :find_labels, only: [:index, :set_priorities, :remove_priority]
   before_action :authorize_read_label!
   before_action :authorize_admin_labels!, only: [:new, :create, :edit, :update,
                                                  :generate, :destroy, :remove_priority,
@@ -12,9 +12,8 @@ class Projects::LabelsController < Projects::ApplicationController
   respond_to :js, :html
 
   def index
-    @prioritized_labels = @labels.prioritized
-    @group_labels = @project.group.labels.unprioritized if @project.group.present?
-    @project_labels = @project.labels.unprioritized.page(params[:page])
+    @prioritized_labels = @available_labels.prioritized
+    @labels = @available_labels.unprioritized.page(params[:page])
 
     respond_to do |format|
       format.html
@@ -70,7 +69,7 @@ class Projects::LabelsController < Projects::ApplicationController
 
   def destroy
     @label.destroy
-    @labels = labels
+    @labels = find_labels
 
     respond_to do |format|
       format.html do
@@ -83,7 +82,7 @@ class Projects::LabelsController < Projects::ApplicationController
 
   def remove_priority
     respond_to do |format|
-      label = labels.find(params[:id])
+      label = @available_labels.find(params[:id])
 
       if label.update_attribute(:priority, nil)
         format.json { render json: label }
@@ -96,8 +95,10 @@ class Projects::LabelsController < Projects::ApplicationController
 
   def set_priorities
     Label.transaction do
+      label_ids = @available_labels.where(id: params[:label_ids]).pluck(:id)
+
       params[:label_ids].each_with_index do |label_id, index|
-        next unless labels.where(id: label_id).any?
+        next unless label_ids.include?(label_id.to_i)
 
         Label.where(id: label_id).update_all(priority: index)
       end
@@ -125,8 +126,8 @@ class Projects::LabelsController < Projects::ApplicationController
   end
   alias_method :subscribable_resource, :label
 
-  def labels
-    @labels ||= LabelsFinder.new(current_user, project_id: @project.id).execute
+  def find_labels
+    @available_labels ||= LabelsFinder.new(current_user, project_id: @project.id).execute
   end
 
   def authorize_admin_labels!
diff --git a/app/helpers/labels_helper.rb b/app/helpers/labels_helper.rb
index 6d0d33b84fba08402b021c6af30ad2ef4429ac0b..e8992c114b08682b5fc6a13910996875cec6ed4d 100644
--- a/app/helpers/labels_helper.rb
+++ b/app/helpers/labels_helper.rb
@@ -81,26 +81,6 @@ module LabelsHelper
     end
   end
 
-  def label_type_icon(label, options = {})
-    title, icon =
-      case label
-      when GroupLabel then ['Group', 'folder-open']
-      when ProjectLabel then ['Project', 'bookmark']
-      end
-
-    options[:class] ||= ''
-    options[:class] << ' has-tooltip js-label-type'
-    options[:class] << ' hidden' if options.fetch(:hidden, false)
-
-    content_tag :span,
-      class: options[:class],
-      data: { 'placement' => 'top' },
-      title: title,
-      aria: { label: title } do
-      icon(icon, base: true)
-    end
-  end
-
   def render_colored_label(label, label_suffix = '', tooltip: true)
     label_color = label.color || Label::DEFAULT_COLOR
     text_color = text_color_for_bg(label_color)
diff --git a/app/views/groups/labels/edit.html.haml b/app/views/groups/labels/edit.html.haml
index e247393abd5b00473c837a6aac7caf3eb05366ee..28471f407adc4b08bbe384fbdb999454297b4f24 100644
--- a/app/views/groups/labels/edit.html.haml
+++ b/app/views/groups/labels/edit.html.haml
@@ -1,8 +1,7 @@
 - page_title 'Edit', @label.name, 'Labels'
 
 %h3.page-title
-  = icon('folder-open')
-  Edit Group Label
+  Edit Label
 %hr
 
 = render 'form', url: group_label_path(@group, @label)
diff --git a/app/views/groups/labels/index.html.haml b/app/views/groups/labels/index.html.haml
index 8e93ea4f62502f9b3c177f474300091aeea72ffb..6c69e3465f4a382b175ce0395357320cf000ff4b 100644
--- a/app/views/groups/labels/index.html.haml
+++ b/app/views/groups/labels/index.html.haml
@@ -10,13 +10,9 @@
         New label
 
 .labels
-  - hide = @group.labels.empty? || (params[:page].present? && params[:page] != '1')
-  .group-labels
-    %h5{ class: ('hide' if hide) }
-      = icon('folder-open')
-      Group Labels
+  .other-labels
     - if @labels.present?
-      %ul.content-list.manage-labels-list.js-group-labels
+      %ul.content-list.manage-labels-list.js-other-labels
         = render partial: 'shared/label', collection: @labels, as: :label
         = paginate @labels, theme: 'gitlab'
     - else
diff --git a/app/views/groups/labels/new.html.haml b/app/views/groups/labels/new.html.haml
index 01a50607db48be911bf3de6ee1e79975d05eff21..257ae97de03a0cee62b2a3365c72148998759315 100644
--- a/app/views/groups/labels/new.html.haml
+++ b/app/views/groups/labels/new.html.haml
@@ -1,9 +1,8 @@
-- page_title 'New Group Label'
+- page_title 'New Label'
 - header_title group_title(@group, 'Labels', group_labels_path(@group))
 
 %h3.page-title
-  = icon('folder-open')
-  New Group Label
+  New Label
 %hr
 
 = render 'form', url: group_labels_path
diff --git a/app/views/projects/labels/edit.html.haml b/app/views/projects/labels/edit.html.haml
index 372abcb877386e3d05b090690acc9e0c5792e7a7..49adb593559b831b842b20c0c8d32490ae05a31a 100644
--- a/app/views/projects/labels/edit.html.haml
+++ b/app/views/projects/labels/edit.html.haml
@@ -4,7 +4,6 @@
 
 %div{ class: container_class }
   %h3.page-title
-    = icon('bookmark')
-    Edit Project Label
+    Edit Label
   %hr
   = render 'form', url: namespace_project_label_path(@project.namespace.becomes(Namespace), @project, @label)
diff --git a/app/views/projects/labels/index.html.haml b/app/views/projects/labels/index.html.haml
index 99f8e8095ad84a81b389f1896f12141676628912..c1ec9cabc407b549593ea16a33739be3fe2561c3 100644
--- a/app/views/projects/labels/index.html.haml
+++ b/app/views/projects/labels/index.html.haml
@@ -14,36 +14,26 @@
           New label
 
   .labels
-    - unless @labels.empty?
+    - if can?(current_user, :admin_label, @project)
       -# Only show it in the first page
-      - hide = params[:page].present? && params[:page] != '1'
-      - if can?(current_user, :admin_label, @project)
-        .prioritized-labels{ class: ('hidden' if hide) }
-          %h5 Prioritized Labels
-          %ul.content-list.manage-labels-list.js-prioritized-labels{ "data-url" => set_priorities_namespace_project_labels_path(@project.namespace, @project) }
-            %p.empty-message{ class: ('hidden' unless @prioritized_labels.empty?) } No prioritized labels yet
-            - if @prioritized_labels.present?
-              = render partial: 'shared/label', collection: @prioritized_labels, as: :label
-
-      .group-labels{ class: ('hidden' if hide || @project.group.blank? || @group_labels.empty?) }
-        %h5
-          = icon('folder-open')
-          Group Labels
-        %ul.content-list.manage-labels-list.js-group-labels
-          - if @group_labels.present?
-            = render partial: 'shared/label', collection: @group_labels, as: :label
+      - hide = @project.labels.empty? || (params[:page].present? && params[:page] != '1')
+      .prioritized-labels{ class: ('hide' if hide) }
+        %h5 Prioritized Labels
+        %ul.content-list.manage-labels-list.js-prioritized-labels{ "data-url" => set_priorities_namespace_project_labels_path(@project.namespace, @project) }
+          %p.empty-message{ class: ('hidden' unless @prioritized_labels.empty?) } No prioritized labels yet
+          - if @prioritized_labels.present?
+            = render partial: 'shared/label', collection: @prioritized_labels, as: :label
 
-      .project-labels{ class: ('hidden' if @project_labels.empty?) }
-        %h5{ class: ('hidden' if hide) }
-          = icon('bookmark')
-          Project Labels
-        %ul.content-list.manage-labels-list.js-project-labels
-          - if @project_labels.present?
-            = render partial: 'shared/label', collection: @project_labels, as: :label
-            = paginate @project_labels, theme: 'gitlab'
-    - else
-      .nothing-here-block
-        - if can?(current_user, :admin_label, @project)
-          Create a label or #{link_to 'generate a default set of labels', generate_namespace_project_labels_path(@project.namespace, @project), method: :post}.
-        - else
-          No labels created yet.
+    .other-labels
+      - if can?(current_user, :admin_label, @project)
+        %h5{ class: ('hide' if hide) } Other Labels
+      %ul.content-list.manage-labels-list.js-other-labels
+        - if @labels.present?
+          = render partial: 'shared/label', collection: @labels, as: :label
+        = paginate @labels, theme: 'gitlab'
+      - if @labels.blank?
+        .nothing-here-block
+          - if can?(current_user, :admin_label, @project)
+            Create a label or #{link_to 'generate a default set of labels', generate_namespace_project_labels_path(@project.namespace, @project), method: :post}.
+          - else
+            No labels created
diff --git a/app/views/projects/labels/new.html.haml b/app/views/projects/labels/new.html.haml
index f170c41bfc4a68ed3588619d4b499986ca3feb41..0c177feb43ca81e761ddbfc34bb76dac0196e3f8 100644
--- a/app/views/projects/labels/new.html.haml
+++ b/app/views/projects/labels/new.html.haml
@@ -4,7 +4,6 @@
 
 %div{ class: container_class }
   %h3.page-title
-    = icon('bookmark')
-    New Project Label
+    New Label
   %hr
   = render 'form', url: namespace_project_labels_path(@project.namespace.becomes(Namespace), @project)
diff --git a/app/views/shared/_label_row.html.haml b/app/views/shared/_label_row.html.haml
index a623bbc6b1150ce834baace620ce286318be1ee0..813ce4f1405216b2c2dc2f625c3d2613b1df9e0d 100644
--- a/app/views/shared/_label_row.html.haml
+++ b/app/views/shared/_label_row.html.haml
@@ -10,8 +10,6 @@
         = icon('star')
   %span.label-name
     = link_to_label(label, subject: @project, tooltip: false)
-    - if can?(current_user, :admin_label, @project)
-      = label_type_icon(label, hidden: label.priority.blank?)
   - if label.description
     %span.label-description
       = markdown_field(label, :description)
diff --git a/spec/controllers/projects/labels_controller_spec.rb b/spec/controllers/projects/labels_controller_spec.rb
index 2b39f9cf0d17302258f7fbff9219c10b6a6a72d9..29251f49810bf3473981ad049dce44160e24b097 100644
--- a/spec/controllers/projects/labels_controller_spec.rb
+++ b/spec/controllers/projects/labels_controller_spec.rb
@@ -33,55 +33,29 @@ describe Projects::LabelsController do
       end
 
       it 'is sorted by priority, then label title' do
-        expect(assigns(:prioritized_labels)).to match_array [group_label_2, label_1, label_3, group_label_1, label_2]
+        expect(assigns(:prioritized_labels)).to eq [group_label_2, label_1, label_3, group_label_1, label_2]
       end
     end
 
-    context '@group_labels' do
-      it 'contains only group labels' do
-        list_labels
-
-        expect(assigns(:group_labels)).to all(have_attributes(group_id: a_value > 0))
-      end
-
+    context '@labels' do
       it 'contains only unprioritized labels' do
         list_labels
 
-        expect(assigns(:group_labels)).to all(have_attributes(priority: nil))
+        expect(assigns(:labels)).to all(have_attributes(priority: nil))
       end
 
       it 'is sorted by label title' do
         list_labels
 
-        expect(assigns(:group_labels)).to match_array [group_label_3, group_label_4]
+        expect(assigns(:labels)).to eq [group_label_3, group_label_4, label_4, label_5]
       end
 
-      it 'is nil when project does not belong to a group' do
+      it 'does not include group labels when project does not belong to a group' do
         project.update(namespace: create(:namespace))
 
         list_labels
 
-        expect(assigns(:group_labels)).to be_nil
-      end
-    end
-
-    context '@project_labels' do
-      before do
-        list_labels
-      end
-
-      it 'contains only project labels' do
-        list_labels
-
-        expect(assigns(:project_labels)).to all(have_attributes(project_id: a_value > 0))
-      end
-
-      it 'contains only unprioritized labels' do
-        expect(assigns(:project_labels)).to all(have_attributes(priority: nil))
-      end
-
-      it 'is sorted by label title' do
-        expect(assigns(:project_labels)).to match_array [label_4, label_5]
+        expect(assigns(:labels)).not_to include(group_label_3, group_label_4)
       end
     end
 
diff --git a/spec/features/projects/labels/update_prioritization_spec.rb b/spec/features/projects/labels/update_prioritization_spec.rb
index 21896f0a787952a47d15cc358b0ca1423687030e..84a12a38c26a1b5ca552611bbdc955da0ab5f2f6 100644
--- a/spec/features/projects/labels/update_prioritization_spec.rb
+++ b/spec/features/projects/labels/update_prioritization_spec.rb
@@ -22,8 +22,8 @@ feature 'Prioritize labels', feature: true do
 
       expect(page).to have_content('No prioritized labels yet')
 
-      page.within('.group-labels') do
-        first('.js-toggle-priority').click
+      page.within('.other-labels') do
+        all('.js-toggle-priority')[1].click
         wait_for_ajax
         expect(page).not_to have_content('feature')
       end
@@ -47,7 +47,7 @@ feature 'Prioritize labels', feature: true do
         expect(page).not_to have_content('bug')
       end
 
-      page.within('.group-labels') do
+      page.within('.other-labels') do
         expect(page).to have_content('feature')
       end
     end
@@ -57,7 +57,7 @@ feature 'Prioritize labels', feature: true do
 
       expect(page).to have_content('No prioritized labels yet')
 
-      page.within('.project-labels') do
+      page.within('.other-labels') do
         first('.js-toggle-priority').click
         wait_for_ajax
         expect(page).not_to have_content('bug')
@@ -82,7 +82,7 @@ feature 'Prioritize labels', feature: true do
         expect(page).not_to have_content('bug')
       end
 
-      page.within('.project-labels') do
+      page.within('.other-labels') do
         expect(page).to have_content('bug')
         expect(page).to have_content('wontfix')
       end