Protect the content that matters
The cut edge is a physical target, and printers can shift a little. Keep essential text, logos, and fine details inside a safe inset from that edge. LabelNest lets you enter a safe inset for repeated text and local artwork. It clips content to that inset in the export so it does not extend into neighboring labels.
Bleed serves a different purpose. A background meant to reach the cut edge normally extends beyond it so a slight trim shift does not leave a white sliver. LabelNest's current browser exporter does not add bleed. Its image content is contained within the label area, so it is best suited to designs that can keep white space near the edge.
Check both design and printer
Use the sheet generator to inspect placement, but do not judge physical safety from the screen alone. Print a plain-paper proof at Actual Size and hold it behind the label stock. Also check the manufacturer's art instructions for that product; its recommended safe distance can vary with the die-cut and printing process.
If you need full-bleed commercial artwork, prepare it with a workflow that supports the manufacturer's exact bleed and trim specifications instead of assuming this outline tool will add them.