This work presents experimental studies aiming at the development of new technology and guidelines for shaping labels from polypropylene multilayer foil using an ultraviolet (UV) laser cutting operation. Currently on production lines, the shaping of labels is undertaken by mechanical cutting or laser cutting, taking into account the phenomenon of hot ablation. These technologies cause many problems such as burr formation on labels sheared edges, rapid tool wear, or heat-affected zone (HAZ) formation. The experimental tests were carried out on a specially designed laser system for cutting polypropylene foil using the phenomenon of cold ablation. Parametric analyses were conducted for several foil thicknesses t = 50, 60, 70 and 80 µm. The process parameters were optimized in terms of high efficiency and high labels-cut surface quality. A new criterion has been developed for assessing the quality of UV laser cutting of polypropylene foils. The results indicate a significant effect of the cutting speed and laser frequency on the width of the degraded zone on the sheet cut edge. As a result of a developed optimization task and reverse task solution it is possible to cut labels at high speeds (v = 1.5 m/s) while maintaining a high quality of cut edge free of carbon, delamination and color changes. A degraded zone does not exceed in the examined cases s ≤ 0.17 mm.