Which scenario necessitates the use of One-Hot Encoding over Label Encoding for categorical variables?

Question

Data Science — Medium

Which scenario necessitates the use of One-Hot Encoding over Label Encoding for categorical variables?

Accepted Answer

Label Encoding assigns an integer to each category, which implies an artificial order (e.g., 2 > 1). If the feature is nominal (no order), models may incorrectly interpret these integers as having mathematical significance. One-Hot Encoding avoids this by creating binary columns, ensuring no false ordinal relationships are introduced.