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This article will try to answer that! You can use the content for anything permitted by the applicable Microsoft 365 license so you should review your End-User License Agreement (EULA) to understand exactly what you can do with works created in Microsoft 365 and SharePoint. Simply put...
Select Apply sensitivity to apply the recommended label, or select X to close the Policy Tip without applying it. To remove sensitive content instead of applying the sensitivity label. In Word, the sensitive content that triggered the sensitivity label recommendation is flagged with a red underline and pink highlight.
Your settings go with you. When you adjust your privacy settings, turning things on or off, those settings will roam to all of your Windows, Mac, Android, and iOS devices.