To create a label that adds a watermark of “Project Falcon” in red, size-12 font diagonally across the documents, follow these steps:

Create a Sensitivity Label:

Log in to the Microsoft Purview portal or the Microsoft Purview compliance portal as an admin.

Navigate to Sensitivity labels and create a new label called “Project Falcon”.

Specify the appropriate settings for this label, including encryption, content markings, and permissions.

Configure Content Markings (Watermark):

When creating the label, configure the content markings section.

Choose “Watermark” and set the text to “Project Falcon”.

Select the color as red and font size as 12.

Set the watermark position to diagonal across the document.

Assign the Label:

Assign the “Project Falcon” label to the relevant documents within the Falcon project.

Users who apply this label will automatically add the specified watermark to their documents.