diff --git a/src/components/data-table/ha-data-table-labels.ts b/src/components/data-table/ha-data-table-labels.ts
index 1c47f0bf64..66c137e92a 100644
--- a/src/components/data-table/ha-data-table-labels.ts
+++ b/src/components/data-table/ha-data-table-labels.ts
@@ -5,20 +5,22 @@ import { LabelRegistryEntry } from "../../data/label_registry";
 import { computeCssColor } from "../../common/color/compute-color";
 import { fireEvent } from "../../common/dom/fire_event";
 import "../ha-label";
+import { stringCompare } from "../../common/string/compare";
 
 @customElement("ha-data-table-labels")
 class HaDataTableLabels extends LitElement {
   @property({ attribute: false }) public labels!: LabelRegistryEntry[];
 
   protected render(): TemplateResult {
+    const labels = this.labels.sort((a, b) => stringCompare(a.name, b.name));
     return html`
       <ha-chip-set>
         ${repeat(
-          this.labels.slice(0, 2),
+          labels.slice(0, 2),
           (label) => label.label_id,
           (label) => this._renderLabel(label, true)
         )}
-        ${this.labels.length > 2
+        ${labels.length > 2
           ? html`<ha-button-menu
               absolute
               role="button"
@@ -27,10 +29,10 @@ class HaDataTableLabels extends LitElement {
               @closed=${this._handleIconOverflowMenuClosed}
             >
               <ha-label slot="trigger" class="plus" dense>
-                +${this.labels.length - 2}
+                +${labels.length - 2}
               </ha-label>
               ${repeat(
-                this.labels.slice(2),
+                labels.slice(2),
                 (label) => label.label_id,
                 (label) => html`
                   <ha-list-item @click=${this._labelClicked} .item=${label}>
diff --git a/src/components/ha-labels-picker.ts b/src/components/ha-labels-picker.ts
index ccf4511a61..2cc592e26e 100644
--- a/src/components/ha-labels-picker.ts
+++ b/src/components/ha-labels-picker.ts
@@ -17,6 +17,7 @@ import "./chips/ha-input-chip";
 import type { HaDevicePickerDeviceFilterFunc } from "./device/ha-device-picker";
 import "./ha-label-picker";
 import type { HaLabelPicker } from "./ha-label-picker";
+import { stringCompare } from "../common/string/compare";
 
 @customElement("ha-labels-picker")
 export class HaLabelsPicker extends SubscribeMixin(LitElement) {
@@ -75,7 +76,7 @@ export class HaLabelsPicker extends SubscribeMixin(LitElement) {
 
   @property({ type: Boolean }) public required = false;
 
-  @state() private _labels?: LabelRegistryEntry[];
+  @state() private _labels?: { [id: string]: LabelRegistryEntry };
 
   @query("ha-label-picker", true) public labelPicker!: HaLabelPicker;
 
@@ -92,22 +93,28 @@ export class HaLabelsPicker extends SubscribeMixin(LitElement) {
   protected hassSubscribe(): (UnsubscribeFunc | Promise<UnsubscribeFunc>)[] {
     return [
       subscribeLabelRegistry(this.hass.connection, (labels) => {
-        this._labels = labels;
+        const lookUp = {};
+        labels.forEach((label) => {
+          lookUp[label.label_id] = label;
+        });
+        this._labels = lookUp;
       }),
     ];
   }
 
   protected render(): TemplateResult {
+    const labels = this.value
+      ?.map((id) => this._labels?.[id])
+      .sort((a, b) =>
+        stringCompare(a?.name || "", b?.name || "", this.hass.locale.language)
+      );
     return html`
-      ${this.value?.length
+      ${labels?.length
         ? html`<ha-chip-set>
             ${repeat(
-              this.value,
-              (item) => item,
-              (item, idx) => {
-                const label = this._labels?.find(
-                  (lbl) => lbl.label_id === item
-                );
+              labels,
+              (label) => label?.label_id,
+              (label, idx) => {
                 const color = label?.color
                   ? computeCssColor(label.color)
                   : undefined;
@@ -168,9 +175,6 @@ export class HaLabelsPicker extends SubscribeMixin(LitElement) {
           label.label_id,
           values
         );
-        this._labels = this._labels!.map((lbl) =>
-          lbl.label_id === updated.label_id ? updated : lbl
-        );
         return updated;
       },
     });