I am trying to make a label that will follow a moving mesh but always point to the camera. I found something similar in the babylonjs wiki, but that label always stayed the same size no matter how far or close I am to the mesh. Is their anyway to replicate that but make the label smaller as I go away from it just like the other meshes?
You can manage the width/height of the GUI control yourself:
https://playground.babylonjs.com/#XCPP9Y#4461
Else, you can use a sprite for your label, as the sprite will change size depending on the position of the camera.
Another way is to use a plane with a billboard material.