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I have a problem with overlapping labels from layer X to layer Y area. I want to automate my work and I'm looking for a tool to help me set the location of the label outside of layer Y (that grayed out area in the image), or to minimise as much as possible the occurrence of labels over the layer area.

Any suggestions?

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You can discourage the placement of labels over your features.

In Layer properties|Labels|Placement scroll way down to Obstacles.

There, check the checkbox to make features act as obstacles.

On the right you will find a button Settings. In the dialog it shows you can change how much the features on this layer will object against labels being placed upon their interior or boundary.

Now, when labels on the other layers are placed in a fixed spot, like with offset from centroid or around centroid turning this option on will simply stop them from being shown. To allow these labels to move to a free spot, you need to set the placement mode for labels on the other layers to free.

Features act as obstacles demo

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