I use the following to only display the label when actully pointed at:
Include this at the very top, just inside the <Document> tag
Code:
<Style id="defaultIcon">
<LabelStyle>
<scale>0</scale>
</LabelStyle>
</Style>
<Style id="hoverIcon">
<IconStyle id="hoverIcon">
<scale>1.1</scale>
</IconStyle>
</Style>
<StyleMap id="defaultStyle">
<Pair>
<key>normal</key>
<styleUrl>#defaultIcon</styleUrl>
</Pair>
<Pair>
<key>highlight</key>
<styleUrl>#hoverIcon</styleUrl>
</Pair>
</StyleMap>
then this in each placemark
Code:
<styleUrl>#defaultStyle</styleUrl>
If you are editing the KML manaully then you can use search and replace to insert the last line into each placemark. let us know if you need help with this step.