uicontrol() objects (which are only for "traditional" figures) use Java underneath. The details of what they use depends upon the kind of control. uicontrol 'edit' and 'text' are handled a different way than radio, push, check, popup, and listbox, and all of the second group accept HTML 1.1 (but not later). For example,
h = uicontrol('style','pop','string', {'<HTML>A<sub>B', '<HTML>PŒQ'})
Sometimes encoding in HTML is good enough .
In cases where it is not good enough, then you need to go down into the Java objects and change them. http://undocumentedmatlab.com has relevant code.
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