What do data labels display in a chart?

Data labels in a chart serve the crucial function of displaying the actual values of the data points represented in the chart. This visibility allows viewers to easily interpret and understand the specific figures behind the graphical representation, enhancing clarity and facilitating analysis. For instance, if a bar chart represents sales figures, the data labels would show the exact sales amounts above or within the bars, rather than just showing categorical names or general trends.

While other elements of a chart—such as category names and legends—provide context and structure, they do not convey the precise data points as data labels do. Summarized statistics might offer a broader perspective on trends or averages but fail to provide the detailed values necessary for in-depth analysis. Therefore, the role of data labels is to ensure that the viewer has immediate access to the quantitative information that the chart is intended to convey.