Label`s can certainly be scary, especially if you are unsure what label, if any, suits you. But in any case, label`s are helpful in the way they help to identify clearer who you are attracted to, how you feel, and so on and so forth. Though, for some people I agree labels may not be necessary, or needed.
Sometimes, labels can be confusing, but I agree with what I read in another post that how you identify should have its own meaning for you. In other words, if you are unsure about bi/pans either option is acceptable. And I wouldn’t say it’s illegal to be a man who calls himself straight to date another male. Also, I see nothing wrong with saying “I don’t know” or feel like you don’t specifically fit in a category.
But labels aren’t exactly a “sentence” either, that if you break you’ll end up in trouble, no matter what you identify as, that may just be what is closest to how you feel toward, or not toward, a specific person, object etc, and can even vaguely describe to whom or what you are attracted. Just to give a possible mate an idea, or to ward off harassment from something you are not happy with. To me, you can be a woman who calls herself gay, and still fall in love with a man, and nothing is wrong with that. Love is love.
Though, if you are someone who is not interested in sex what so ever, you may find it helpful to let the world know you feel that way by saying your asexual, so when you date your partner will knew that sex is off limits. If you were asexual and dating and your partner did not know that, a breakup may happen because the partner could want to have children in the future.
Though at the same time, a person who does not want to have sex may not want to be label themselves asexual because maybe someday they may want to partake in intercourse, but at the time being they are unsure, and do not want to ward off any possible mates who may be interested in intercourse in the future.
Also if you are female and only attracted to females, it may feel uncomfortable to be hit on by a male, hence stating you are lesbian may help that situation from happening.
But none the less, labels are certainly not “everything” or make us who we are. I suppose for some people not having a label may be more comfortable, and that is 100% fine! But I can see for others it may be more comfortable to have them
Personally, it doesn’t matter to me if you label yourself or not, I can see good and bad for both those things, in the end, it’s up to the person to decide what is best for them, and whatever makes them happier and more comfortable, that being labeling their sexuality, or not.