diff --git a/builtin/mainmenu/content/dlg_contentdb.lua b/builtin/mainmenu/content/dlg_contentdb.lua
index 872fab113..7f389135b 100644
--- a/builtin/mainmenu/content/dlg_contentdb.lua
+++ b/builtin/mainmenu/content/dlg_contentdb.lua
@@ -310,9 +310,17 @@ local function get_formspec(dlgdata)
 	})
 	local img_w = cell_h * 3 / 2
 
+	-- Use as much of the available space as possible (so no padding on the
+	-- right/bottom), but don't quite allow the text to touch the border.
+	local text_w = cell_w - img_w - 0.25 - 0.025
+	local text_h = cell_h - 0.25 - 0.025
+
 	local start_idx = (cur_page - 1) * num_per_page + 1
 	for i=start_idx, math.min(#contentdb.packages, start_idx+num_per_page-1) do
 		local package = contentdb.packages[i]
+		local text = core.colorize(mt_color_green, package.title) ..
+			core.colorize("#BFBFBF", " by " .. package.author) .. "\n" ..
+			package.short_description
 
 		table.insert_all(formspec, {
 			"container[",
@@ -327,13 +335,14 @@ local function get_formspec(dlgdata)
 			"image[0,0;", img_w, ",", cell_h, ";",
 				core.formspec_escape(get_screenshot(package, package.thumbnail, 2)), "]",
 
-			"label[", img_w + 0.25 + 0.05, ",0.5;",
-				core.formspec_escape(
-					core.colorize(mt_color_green, package.title) ..
-							core.colorize("#BFBFBF", " by " .. package.author)), "]",
+			"label[", img_w + 0.25, ",0.25;", text_w, ",", text_h, ";",
+				core.formspec_escape(text), "]",
 
-			"textarea[", img_w + 0.25, ",0.75;", cell_w - img_w - 0.25, ",", cell_h - 0.75, ";;;",
-				core.formspec_escape(package.short_description), "]",
+			-- Add a tooltip in case the label overflows and the short description is cut off.
+			"tooltip[", img_w + 0.25, ",0.25;", text_w, ",", text_h, ";",
+				-- Text in tooltips doesn't wrap automatically, so we do it manually to
+				-- avoid everything being one long line.
+				core.formspec_escape(core.wrap_text(package.short_description, 80)), "]",
 
 			"style[view_", i, ";border=false]",
 			"style[view_", i, ":hovered;bgimg=", core.formspec_escape(defaulttexturedir .. "button_hover_semitrans.png"), "]",
@@ -349,7 +358,7 @@ local function get_formspec(dlgdata)
 		end
 
 		table.insert_all(formspec, {
-			"container[", cell_w - 0.625,",", 0.25, "]",
+			"container[", cell_w - 0.625,",", 0.125, "]",
 		})
 
 		if package.downloading then
diff --git a/doc/lua_api.md b/doc/lua_api.md
index 31eb35dd2..6943dec16 100644
--- a/doc/lua_api.md
+++ b/doc/lua_api.md
@@ -2842,6 +2842,9 @@ Version History
   * Add field_enter_after_edit[] (experimental)
 * Formspec version 8 (5.10.0)
   * scroll_container[]: content padding parameter
+* Formspec version 9 (5.12.0)
+  * Add allow_close[]
+  * label[]: Add "area label" variant
 
 Elements
 --------
@@ -3154,9 +3157,11 @@ Elements
 ### `textarea[<X>,<Y>;<W>,<H>;<name>;<label>;<default>]`
 
 * Same as fields above, but with multi-line input
+* Text is wrapped to fit within the given bounds.
 * If the text overflows, a vertical scrollbar is added.
 * If the name is empty, the textarea is read-only and
   the background is not shown, which corresponds to a multi-line label.
+  See also `label[<X>,<Y>;<W>,<H>;<label>]` for an alternative.
 
 ### `label[<X>,<Y>;<label>]`
 
@@ -3171,6 +3176,16 @@ Elements
   half a coordinate.  With the old system, newlines are spaced 2/5 of
   an inventory slot.
 
+### `label[<X>,<Y>;<W>,<H>;<label>]`
+
+* The "area label" formspec element displays the text set in `label`
+  at the specified position and size.
+* Text is wrapped to fit within the given bounds.
+* If the text overflows, it is currently simply truncated, but this behavior is
+  subject to change. There is no scrollbar.
+* See also `textarea` for an alternative.
+* Only available with the new coordinate system.
+
 ### `hypertext[<X>,<Y>;<W>,<H>;<name>;<text>]`
 * Displays a static formatted text with hyperlinks.
 * **Note**: This element is currently unstable and subject to change.
diff --git a/src/gui/guiFormSpecMenu.cpp b/src/gui/guiFormSpecMenu.cpp
index 3c5a9ffde..720ddcb6f 100644
--- a/src/gui/guiFormSpecMenu.cpp
+++ b/src/gui/guiFormSpecMenu.cpp
@@ -1768,12 +1768,19 @@ void GUIFormSpecMenu::parseHyperText(parserData *data, const std::string &elemen
 void GUIFormSpecMenu::parseLabel(parserData* data, const std::string &element)
 {
 	std::vector<std::string> parts;
-	if (!precheckElement("label", element, 2, 2, parts))
+	if (!precheckElement("label", element, 2, data->real_coordinates ? 3 : 2, parts))
 		return;
 
-	std::vector<std::string> v_pos = split(parts[0],',');
+	std::vector<std::string> v_pos = split(parts[0], ',');
+	MY_CHECKPOS("label", 0);
 
-	MY_CHECKPOS("label",0);
+	bool has_size = parts.size() >= 3;
+	v2s32 geom;
+	if (has_size) {
+		std::vector<std::string> v_geom = split(parts[1], ',');
+		MY_CHECKGEOM("label", 1);
+		geom = getRealCoordinateGeometry(v_geom);
+	}
 
 	if(!data->explicit_size)
 		warningstream<<"invalid use of label without a size[] element"<<std::endl;
@@ -1783,53 +1790,8 @@ void GUIFormSpecMenu::parseLabel(parserData* data, const std::string &element)
 	if (!font)
 		font = m_font;
 
-	EnrichedString str(unescape_string(utf8_to_wide(parts[1])));
-	size_t str_pos = 0;
-
-	for (size_t i = 0; str_pos < str.size(); ++i) {
-		EnrichedString line = str.getNextLine(&str_pos);
-
-		core::rect<s32> rect;
-
-		if (data->real_coordinates) {
-			// Lines are spaced at the distance of 1/2 imgsize.
-			// This alows lines that line up with the new elements
-			// easily without sacrificing good line distance.  If
-			// it was one whole imgsize, it would have too much
-			// spacing.
-			v2s32 pos = getRealCoordinateBasePos(v_pos);
-
-			// Labels are positioned by their center, not their top.
-			pos.Y += (((float) imgsize.Y) / -2) + (((float) imgsize.Y) * i / 2);
-
-			rect = core::rect<s32>(
-				pos.X, pos.Y,
-				pos.X + font->getDimension(line.c_str()).Width,
-				pos.Y + imgsize.Y);
-
-		} else {
-			// Lines are spaced at the nominal distance of
-			// 2/5 inventory slot, even if the font doesn't
-			// quite match that.  This provides consistent
-			// form layout, at the expense of sometimes
-			// having sub-optimal spacing for the font.
-			// We multiply by 2 and then divide by 5, rather
-			// than multiply by 0.4, to get exact results
-			// in the integer cases: 0.4 is not exactly
-			// representable in binary floating point.
-
-			v2s32 pos = getElementBasePos(nullptr);
-			pos.X += stof(v_pos[0]) * spacing.X;
-			pos.Y += (stof(v_pos[1]) + 7.0f / 30.0f) * spacing.Y;
-
-			pos.Y += ((float) i) * spacing.Y * 2.0 / 5.0;
-
-			rect = core::rect<s32>(
-				pos.X, pos.Y - m_btn_height,
-				pos.X + font->getDimension(line.c_str()).Width,
-				pos.Y + m_btn_height);
-		}
-
+	auto add_label = [&](core::rect<s32> rect, const EnrichedString &text,
+			EGUI_ALIGNMENT align_h, EGUI_ALIGNMENT align_v, bool word_wrap) {
 		FieldSpec spec(
 			"",
 			L"",
@@ -1838,9 +1800,10 @@ void GUIFormSpecMenu::parseLabel(parserData* data, const std::string &element)
 			4
 		);
 		gui::IGUIStaticText *e = gui::StaticText::add(Environment,
-				line, rect, false, false, data->current_parent,
+				text, rect, false, false, data->current_parent,
 				spec.fid);
-		e->setTextAlignment(gui::EGUIA_UPPERLEFT, gui::EGUIA_CENTER);
+		e->setTextAlignment(align_h, align_v);
+		e->setWordWrap(word_wrap);
 
 		e->setNotClipped(style.getBool(StyleSpec::NOCLIP, false));
 		e->setOverrideColor(style.getColor(StyleSpec::TEXTCOLOR, video::SColor(0xFFFFFFFF)));
@@ -1851,6 +1814,67 @@ void GUIFormSpecMenu::parseLabel(parserData* data, const std::string &element)
 		// labels should let events through
 		e->grab();
 		m_clickthrough_elements.push_back(e);
+	};
+
+	EnrichedString str(unescape_string(utf8_to_wide(parts[has_size ? 2 : 1])));
+
+	if (geom == v2s32()) {
+		size_t str_pos = 0;
+
+		for (size_t i = 0; str_pos < str.size(); ++i) {
+			EnrichedString line = str.getNextLine(&str_pos);
+
+			core::rect<s32> rect;
+
+			if (data->real_coordinates) {
+				// Lines are spaced at the distance of 1/2 imgsize.
+				// This alows lines that line up with the new elements
+				// easily without sacrificing good line distance.  If
+				// it was one whole imgsize, it would have too much
+				// spacing.
+				v2s32 pos = getRealCoordinateBasePos(v_pos);
+
+				// Labels are positioned by their center, not their top.
+				pos.Y += (((float) imgsize.Y) / -2) + (((float) imgsize.Y) * i / 2);
+
+				rect = core::rect<s32>(
+					pos.X, pos.Y,
+					pos.X + font->getDimension(line.c_str()).Width,
+					pos.Y + imgsize.Y);
+
+			} else {
+				// Lines are spaced at the nominal distance of
+				// 2/5 inventory slot, even if the font doesn't
+				// quite match that.  This provides consistent
+				// form layout, at the expense of sometimes
+				// having sub-optimal spacing for the font.
+				// We multiply by 2 and then divide by 5, rather
+				// than multiply by 0.4, to get exact results
+				// in the integer cases: 0.4 is not exactly
+				// representable in binary floating point.
+
+				v2s32 pos = getElementBasePos(nullptr);
+				pos.X += stof(v_pos[0]) * spacing.X;
+				pos.Y += (stof(v_pos[1]) + 7.0f / 30.0f) * spacing.Y;
+
+				pos.Y += ((float) i) * spacing.Y * 2.0 / 5.0;
+
+				rect = core::rect<s32>(
+					pos.X, pos.Y - m_btn_height,
+					pos.X + font->getDimension(line.c_str()).Width,
+					pos.Y + m_btn_height);
+			}
+
+			add_label(rect, line, gui::EGUIA_UPPERLEFT, gui::EGUIA_CENTER, false);
+		}
+	} else {
+		v2s32 pos = getRealCoordinateBasePos(v_pos);
+		core::rect<s32> rect(
+				pos.X, pos.Y,
+				pos.X + geom.X,
+				pos.Y + geom.Y);
+
+		add_label(rect, str, gui::EGUIA_UPPERLEFT, gui::EGUIA_UPPERLEFT, true);
 	}
 }
 
diff --git a/src/network/networkprotocol.cpp b/src/network/networkprotocol.cpp
index d1cc245d7..a88b5b091 100644
--- a/src/network/networkprotocol.cpp
+++ b/src/network/networkprotocol.cpp
@@ -71,4 +71,4 @@
 const u16 LATEST_PROTOCOL_VERSION = 48;
 
 // See also formspec [Version History] in doc/lua_api.md
-const u16 FORMSPEC_API_VERSION = 8;
+const u16 FORMSPEC_API_VERSION = 9;