HI Keith,
Right, the GUI checks what the preferences are, but the MapBasic doesn't generally do that. Since a style override is on and there's no default pattern style in your MapBasic statement, the label ends up blank. You could add " Default Frame Style "%" " to your MapBasic
Create Designer Legend From Window 354944664 Default Frame Style "%" Frame From Layer 1
and you should get the "Region" label.
But your workaround is fine too!
-Michele