The number of diagnoses of developmental disorders is on the rise and the use of labels for developmental disorders, such as attention‐deficit/hyperactivity disorder and autism spectrum disorder, is widening. Diagnostic labels can play an important role in helping those who display atypical behaviour and their caregivers to cope with associated challenges and, possibly, to get treatment. But these labels are increasingly contested and associated with a variety of harmful effects. In this paper, we analyze the role diagnostic labels can play in four different contexts (scientific, therapeutic, social, and administrative) and identify what various stakeholders stand to gain or lose with continued, expanded, or abolished use of those labels. Our analysis reveals labels serve different purposes in each of these contexts, benefitting different stakeholders. Any overall evaluation, critique, or defence of labels needs to consider the interests of all stakeholders in these contexts.