diff --git a/packages/block-library/src/categories/index.php b/packages/block-library/src/categories/index.php
index 7e18bda99a8f38..60a29713b4660d 100644
--- a/packages/block-library/src/categories/index.php
+++ b/packages/block-library/src/categories/index.php
@@ -49,7 +49,7 @@ function render_block_core_categories( $attributes, $content, $block ) {
 
 		$show_label     = empty( $attributes['showLabel'] ) ? ' screen-reader-text' : '';
 		$default_label  = $taxonomy->label;
-		$label_text     = ! empty( $attributes['label'] ) ? esc_html( $attributes['label'] ) : $default_label;
+		$label_text     = ! empty( $attributes['label'] ) ? wp_kses_post( $attributes['label'] ) : $default_label;
 		$wrapper_markup = '<div %1$s><label class="wp-block-categories__label' . $show_label . '" for="' . esc_attr( $id ) . '">' . $label_text . '</label>%2$s</div>';
 		$items_markup   = wp_dropdown_categories( $args );
 		$type           = 'dropdown';