FYI: I got this response from submitting the question to SmartBear support:
From: CodeCollaborator Support
[mailto:codecollab@smartbear.com]
Sent: Monday, April 16, 2012 12:57 PM
To: EXT-Harris, Scott H
Subject: Re: (Case 63000) Web Submission - defect label field
Hi Scott,
I'm sorry for the confusion. We have had other customers
give the same feedback about this. It is intended to be a one-line summary
field for the defect.
Because of the feedback we have received, we are going to
be changing it in our upcoming 7.1 release, to make it more clear.
Please let us know if you have any further questions.
Thanks,
--
Nancy Terry
CodeCollaborator Support
codecollab@smartbear.com
512.257.1569 9am-5pm CST, M-F