Yes, Oracle Label Security (OLS) can be used with EBS 12.2.  It can also be used for earlier EBS releases such as EBS 12.1 and 12.0.

Oracle Label Security is an optional database-level technology for developing customized security schemes. It is possible to use this technology to customize EBS 12.2.

There is no documentation for using this technology with EBS 12.2. The principles described in the following note for EBS 11i are generally-applicable to customizing later EBS releases such as EBS 12.1 and 12.2:

• Enabling Oracle Label Security for Oracle E-Business Suite (Note 234599.1)

What are the support implications of using OLS with EBS?

This is a technology used for customizing EBS.  The standard support implications for customizations apply to customizations created with OLS:

• Support Implications for your EBS Customizations

Related Articles

• New Whitepaper: Function Security + Role-Based Access Control in Oracle EBS
• Webcast: “Ready or Not: Applying Secure Configuration to EBS”

Source: https://blogs.oracle.com/stevenchan/can-oracle-label-security-be-used-with-ebs-122