[GIS] Adjusting Transparency of Labels on ArcMap

arcmaplabelingtransparency

I am pretty new to GIS, and I am trying to figure out how to adjust the transparency of my labels.

I know you have to convert the labels to annotations, but I can't seem to do that.

I right click on the layer and go to "Convert Labels to Annotations". According to my many Google searches, I am supposed save the annotations in a database, not in the map. (I tried in the map and it wouldn't let me adjust transparency anyways.)

My biggest problem is that "Destination" is set to "Unknown", and I don't know how to change this or where my Destination should even be. I attached a screenshot so you can visualize what I am saying.

enter image description here

Best Answer

As @MichaelStimson and @RobinHorner noted, you must first convert your labels to annotation.

Once you have an annotation feature class created and added to the map as a layer, you can adjust transparency in the layer's properties. (As of 10.4.1, at least.)

enter image description here

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