You can visualize and manage Kubernetes objects with more tools than kubectl and the dashboard. A common set of labels allows tools to work interoperably, describing objects in a common manner that all tools can understand.
In addition to supporting tooling, the recommended labels describe applications in a way that can be queried.
The metadata is organized around the concept of an application. Kubernetes is not a platform as a service (PaaS) and doesn't have or enforce a formal notion of an application.