diff --git a/containments/desktop/package/contents/ui/FolderViewLayer.qml b/containments/desktop/package/contents/ui/FolderViewLayer.qml
--- a/containments/desktop/package/contents/ui/FolderViewLayer.qml
+++ b/containments/desktop/package/contents/ui/FolderViewLayer.qml
@@ -226,10 +226,14 @@
         Item {
             id: label
 
+            // If we bind height to visible, it will be invisible initially (since "visible"
+            // propagates recursively) and that confuses the Label, hence the temp property.
+            readonly property bool active: (plasmoid.configuration.labelMode != 0)
+
             width: parent.width
-            height: visible ? labelHeight : 0
+            height: active ? labelHeight : 0
 
-            visible: (plasmoid.configuration.labelMode != 0)
+            visible: active
 
             property Item windowPin: null