diff --git a/news/changelog-1.6.md b/news/changelog-1.6.md
index 042a99dea9f..efa1059b7da 100644
--- a/news/changelog-1.6.md
+++ b/news/changelog-1.6.md
@@ -124,6 +124,7 @@ All changes included in 1.6:
 ### `jupyter`
 
 - ([#9134](https://github.com/quarto-dev/quarto-cli/issues/9134)): Add proper fix for `multiprocessing` in notebooks with the Python kernel.
+- ([#10097](https://github.com/quarto-dev/quarto-cli/issues/10097)): Ensure papermill parameterization works when default values are set in a cell with labels.
 
 ## Chromium support
 
diff --git a/src/resources/jupyter/notebook.py b/src/resources/jupyter/notebook.py
index 6158960b9ec..0106d29ff15 100644
--- a/src/resources/jupyter/notebook.py
+++ b/src/resources/jupyter/notebook.py
@@ -13,6 +13,7 @@
 from pathlib import Path
 
 from yaml import safe_load as parse_string
+from yaml import safe_dump
 
 from log import trace
 import nbformat
@@ -641,6 +642,20 @@ def nb_parameterize(nb, params):
 
    # prepend options
    if len(params_cell_yaml):
+      # https://github.com/quarto-dev/quarto-cli/issues/10097
+      # We need to find and drop `label: ` from the yaml options
+      # to avoid label duplication
+      # The only way to do this robustly is to parse the yaml
+      # and then re-encode it
+      try:
+         params_cell_yaml = parse_string("\n".join(params_cell_yaml))
+         del params_cell_yaml['label']
+         params_cell_yaml = safe_dump(params_cell_yaml).strip().splitlines()
+      except Exception as e:
+         sys.stderr.write("\nWARNING: Invalid YAML option format in cell:\n" + "\n".join(params_cell_yaml) + "\n")
+         sys.stderr.flush()
+         params_cell_yaml = []
+      
       comment_chars = nb_language_comment_chars(language)
       option_prefix = comment_chars[0] + "| "
       option_suffix = comment_chars[1] if len(comment_chars) > 1 else None
diff --git a/tests/docs/jupyter/parameters/issue-10097.qmd b/tests/docs/jupyter/parameters/issue-10097.qmd
new file mode 100644
index 00000000000..9d121f338c5
--- /dev/null
+++ b/tests/docs/jupyter/parameters/issue-10097.qmd
@@ -0,0 +1,11 @@
+---
+format: html
+engine: jupyter
+keep-ipynb: true
+---
+
+```{python}
+#| label: test
+#| tags: [parameters]
+datapath = None
+```
\ No newline at end of file
diff --git a/tests/smoke/jupyter/issue-10097.test.ts b/tests/smoke/jupyter/issue-10097.test.ts
new file mode 100644
index 00000000000..19586200e28
--- /dev/null
+++ b/tests/smoke/jupyter/issue-10097.test.ts
@@ -0,0 +1,26 @@
+/*
+ * parameter-label-duplication.test.ts
+ * 
+ * https://github.com/quarto-dev/quarto-cli/issues/10097
+ *
+ * Copyright (C) 2023 Posit Software, PBC
+ */
+
+import { quarto } from "../../../src/quarto.ts";
+import { test } from "../../test.ts";
+import { assertEquals } from "testing/asserts";
+import { noErrors } from "../../verify.ts";
+
+test({
+  name: "jupyter:parameter:label-duplication",
+  context: {},
+  execute: async () => {
+    // https://github.com/quarto-dev/quarto-cli/issues/10097
+    await quarto(["render", 
+      "docs/jupyter/parameters/issue-10097.qmd",
+      "--execute-param", 'datapath:"weird"', 
+      "--no-execute-daemon", "--execute"]);
+  },
+  verify: [noErrors],
+  type: "smoke",
+});