an advantage of labels is that they help people identify themselves, find resources and similar people for mutual support
a disadvantage of labels is that they can come to be elevated over the experience in question. questions like "am i trans?" or "am i gay?" are fundamentally flawed because the real questions should be internal, e.g.
1. what do I really want out of sex, love, gender, etc.?
2. how does my current life reflect these desires?
3. how can i make my current life reflect them more?