An inline path label appears as standard horizontal text within a break in the line as shown. When the line moves, the label repositions itself to remain attached to the same point on the line. Inline path labels are useful for identifying paths when representing branch conditions, flows, and transitions.

A lateral path label appears as standard horizontal text offset from the line as shown. When the line moves, the label repositions itself to remain offset from the same point on the line. Lateral path labels can be used in place of inline path labels. In UML lateral path labels are often used to implement association names and messages identifiers.