I just upgraded to LyX 2.1.0. I use the "Code" text style from the Logical Markup module. In prior versions, whenever I formatted a word as code, it was just displayed as such (see the first line of the screenshot). Now, it also writes the label "code" beneath it (see second line).
This may be helpful for more obscure text styles. But in the case of code formatting, I can see that it's formatted as code just by looking at the text. So the label stating the obvious just distracts me from reading the text and makes for an uneven line spacing.
I found that I can hide each label individually by right-clicking the text an un-checking the "Show Label" checkbox. However, what I'm really looking for is some setting in LyX so that whenever I format some snippet of text, the label is hidden by default.