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Starting December 2020, all new and updated iOS apps must display app-based privacy labels. As the first large-scale implementation of privacy nutrition labels in a real-world setting, we aim to understand how these labels affect perceptions of app behavior. Replicating the methodology of Emani-Naeini et al. [IEEE S&P '21] in the space of IoT privacy nutrition labels, we conducted an online study in January 2023 on Prolific with n=1,505 participants to investigate the impact of privacy labels on users' risk perception and willingness to install apps. We found that many privacy label attributes raise participants' risk perception and lower their willingness to install an app. For example, when the app privacy label indicates that financial info will be collected and linked to their identities, participants were 15 times more likely to report increased privacy and security risks associated with the app. Likewise, when a label shows that sensitive info will be collected and used for cross-app/website tracking, participants were 304 times more likely to report a decrease in their willingness to install. However, participants had difficulty understanding privacy label jargon such as diagnostics, identifiers, track and linked. We provide recommendations for enhancing privacy label transparency, the importance of label clarity and accuracy, and how labels can impact consumer choice when suitable alternative apps are available.