What should a GIS analyst do to create and save labels for use in other maps, while allowing edits in ArcMap?

To create and save labels for use in other maps while allowing for edits in ArcMap, converting labels to geodatabase annotation is the most effective approach. Geodatabase annotation is a feature that allows labels to be transformed into spatially-aware graphic elements stored in a geodatabase. This method provides the flexibility to edit the annotations after they have been created, making it suitable for ongoing projects where updates may be necessary.

By using geodatabase annotation, the user can maintain a connection to the underlying features, ensuring that any updates or changes in the original feature class can be easily reflected in the annotations. This is particularly beneficial for maintaining the integrity and relevance of the labeling as the data evolves.

In contrast, saving the settings in a layer file would not allow for edits to be made to the labels directly within the context of the map. Similarly, converting labels to map annotation makes them less flexible than geodatabase annotation, because map annotations are not as easily editable or reusable across different map documents. While the Maplex Label Engine enhances label placement and styling, it does not address the needs for saving and editing labeling in a reusable format. Therefore, converting labels to geodatabase annotation is the right choice for the given requirement.