Understanding Duplicate labels:
INCORRECT:
NARR
Bla bla bla…
goto hair_size
label hair_size
NARR
You chose long hair for yourself.
goto continue_plot
label hair_size
NARR
You chose short hair for yourself.
goto continue_plot
label continue_plot
NARR
Dialogue.
Just imagine you wrote this. You would get an error because label hair_size is being repeated twice. A goto leads to a label and goto hair_size would lead to label hair_size.
BUT THE PROBLEM IS IF GOTO HAIR_SIZE LEADS TO LABEL HAIR_SIZE TWICE and since there are two labels present, which one is it gonna go to?! The long haired option or the short haired one? You have no idea and so wouldn’t a reader. Therefore, it would NOT make sense to duplicate a label. And obviously, you can’t test it because you get an error. It just wouldn’t make sense. I mean, can you seriously imagine a story where duplicate labels were allowed? Oh man, it would be a mess…
However, a label can have multiple gotos leading to it (see how label continue_plot has goto continue_plot twice?) heck, you can have more than three gotos leading to a label!
Hope it makes sense what I’m trying to say 
Moral of this post: Do NOT duplicate labels. Even having three labels or more than three with the same name in your episode is bad. (ex. having label red_color appear five times in your episode is not allowed.)
Also, remember that gotos lead to a label that they share a name with.
So, goto CUSTOMIZE would lead to label CUSTOMIZE and goto PARK would lead to label PARK and so forth.
However, duplicating labels is only restricted to each episode, not your whole entire story. So, if in episode 1, you had label DRESSING_GAME, in episode 2 you can have that label, too, just not have it appear more than once within an episode.
Have a nice day 