According to Apple, labelling the Bluetooth devices will do two major things — First, adding labels to a Bluetooth device will improve audio notifications and second, specifying devices will help in better noise level management. You can read how to measure the noise level on your iPhone here.
iOS 14.4 update gives five categories to label Bluetooth devices — Car Stereo, Headphone, Hearing Aid, Speaker and others.
Here’s how to add labels to your Bluetooth devices:
The latest version of iOS (14.4 or above)
Connected Bluetooth devices
Steps to add labels to your Bluetooth devices on your iPhone
Open Settings on your iPhone or iPad and Head to Bluetooth option
Tap on ‘i’ icon placed next to Bluetooth device
Now, tap on Device type option
If auto-detected device type is incorrect, then choose a label manually
Do note, that this feature does not work with AirPods as iOS automatically detects it as a headphone and hence does not offer the option to select a label manually.