Assembly language labels are a compile-time assembly-time and link-time construct — during assembly and/or linking, these labels are given a memory addresses, sometimes as an absolute address, but often as a relative address from the beginning of the section the label occurs in.
The labels (and the mapping from symbol/label name to address or offset) are omitted in the machine code — today's processors doesn't know about or see assembly labels in machine code.
In assembly language, the call instructions, as well as branch instructions for if-then, while, etc.. have a branch target as one of their operands. For most of these instructions, in machine code, the operand is encoded as a pc-relative offset stored in an immediate field as an operand of the machine code instruction.
See pc-relative addressing mode.
A pc-relative offset in an immediate value is restored to an absolute address by the hardware, using a formula something like address of instruction + immediate:
pcnext-cycle := pccurrent-branch-instruction + immediate * Scale + Bias.
CPU Scale Bias
-------------------
x86 1 0
MIPS 4 4
RISC V 2 0
The assembler/linker then uses the same formula, though solved for the immediate, effectively reversing this computation:
offset = (labeltarget - pccurrent-branch-instruction - Bias) / Scale
This offset is then encoded in the immediate field of the branch or call instruction.
On a MIPS processor, for example, a branch instruction has a 16-bit immediate field, for holding such offset. An immediate value of -1 will branch to self, and immediate value of -5 will branch backwards 4 instructions, and an immediate value of +5 will branch forwards 6 instructions.
MIPS call instructions use an absolute address rather than pc-relative, so they are encoded as a large immediate with a text-segment relative offset of 26 bits in length. (The computation does not sum the lower 26 bits of the pc, so is not really considered pc-relative addressing.)
On RISC V and x86, both branch and call instructions can be done using pc-relative addressing, though on x86 absolute and other addressing modes are available as well.