The term “die cut” is used to describe the process of cutting shapes from paper and other materials. We place a die cutter on our machines and run it over uncut label paper. The resulting labels have shapes cut into them that correspond to the shape of the die.
This means that the die line is the physical border of your label. You should design your label with the assumption that nothing outside the die line will print or remain on the label once it’s peeled up from the liner.