The folder in this setting is the starting point for ITP/Server when looking for a template document. The location of the template document is determined in this way:
<LabelDocuments setting>\<label name parameter>\
When the setting LabelDocuments contains "C:\ITPWORK – TEST\Labels" and the label name parameter of the functions pagestyle and stylesheet contain "Label A" it results for example in:
C:\ITPWORK – TEST\Labels\Label A\