Depending on the label printing process being used, the term "die cutting" can really mean two different things. In a conventional sense the the question is normally weather the labels are "die" cut or "kiss cut". Applying this concept means, a kiss cut label is where the label material is cut, but not the backing paper. Like the image on the left.
Die cut labels however often mean the "cut" also goes through the backing paper (which often makes the labels harder to apply) to leave individual stickers.