Where all can text heights be set for label styles? I created one with a 0.12" text height in both the layout and dragged state, see images. When I use the label in the drawing it is placed with a 0.1"*dwg scale.
You have set the 0.12" part in the right spot, but the label contents needs to be fixed for the label text to be set to 0.12".
From what is shown of the text contents, the "\H0.85x;" part mean take the height set for the text and multiply it by 0.85 which gives you 0.102". This is what you see if you edit the text height in the mtext editor.
The only way i can get this to occur is to copy and paste some Mtext in the label style text editor as you cannot set the text height in the editor as far as I can see in 2011 or 2012.
To fix it, select every thing in the label style text editor and type ofver the top of it, or copy and paste it into note pad and then copy and paste it back from note. This will take all the height changes out of the text and set the label to be at 0.12" as it should be.
If this fixed your issue, click on "Accept as Solution"
Andrew Puller Maitland, NSW, Australia Windows 7 Enterprise 64bit Intel core i7 2600 @ 3.40 GHz with 16GB Ram Civil 3d 2013 64bit
Did not see the \H0.85x in the line until you pointed it out. I recreated the label text and that solved the problem. Not sure how I got that in there, but it was one of the first styles I created so....