This bug has been fixed in Release 14 Service Pack 2 (R14SP2). For previous releases, please read below for any possible workarounds:
We have verified that there is a bug in MATLAB 7.0 (R14) and MATLAB 6.5.1 (R13sp1) in the way that MATLAB handles Y-axis label orientations. To work around this issue, you can use the text object's CreateFcn to set its Rotation to 90. In MATLAB 7.0, you can use an anonymous function for the CreateFcn callback:
ylabel('Y label','CreateFcn',@(h,e) set(h,'Rotation',45))
Here, 'h' refers to the handle for the text object.
In MATLAB 6.5, you can use a string to be evaluated for the CreateFcn, and use GCBO in the string to refer to the object's handle:
ylabel('Y label','CreateFcn','set(gcbo,''Rotation'',45)')
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