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An all-optical label recognition method is proposed, which is based on the fiber Bragg grating encoder/decoder and a semiconductor optical amplifier, employing multiple two-dimensional optical orthogonal codes for optical label in optical packet switching system. The program effectively reduces the code autocorrelation/cross-correlation requirements of label identification and removes the cross-correlation pulses after decoding, greatly increases the coding capacity and number of available labels, and improves the reliability of label identification, using the fiber Bragg grating as a decoder and four-wave mixing in the semiconductor optical amplifier. The feasibility of the method is validated by the simulation of OptiSystem software. The simulation also shows that the label has a relatively high extinction ratio and can be operated easily.