Head to the Grades page and select the gradebook setup view. Click on Add Category, then fill out the category page with the details mentioned below.
Please note the following settings:
Afterwards, click save to apply the settings. You should see the new category added to the Gradebook setup page. Ignore the weight of the category for now.
The last step to conclude the Labs category is to move all labs activities in the Gradebook setup page to the Lab category we've created.
Start by ticking all the labs displayed in the Gradebook setup page.
After selecting all labs, scroll to the end of the page and select the labs category in the Move selected items to dropdown menu.
You should see that all labs are now included under the Labs category.