Label text alignment in justified format

Is it possible to make a label tex alignment in justified format?
If yes, a little guidance would be a great help to me.

Maybe you can try to insert CSS in HTML.

<p style="text-align:justify"> Type your text here </p>

Use the join block, it will be easier.

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Do I need to turn HTML Format enabled in label?

If you want to use HTML text, then yes

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What would be the diference between centered and justified?

Little research on the web :
justified —text is aligned along the left margin, and letter- and word-spacing is adjusted so that the text falls flush with both margins, also known as fully justified or full justification ; centered —text is aligned to neither the left nor right margin; there is an even gap on each side of each line.

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