Label Smoothing is a regularization technique that introduces noise for the labels. This accounts for the fact that datasets may have mistakes in them, so maximizing the likelihood of $\log{p}\left(y\mid{x}\right)$ directly can be harmful. Assume for a small constant $\epsilon$, the training set label $y$ is correct with probability $1-\epsilon$ and incorrect otherwise. Label Smoothing regularizes a model based on a softmax with $k$ output values by replacing the hard $0$ and $1$ classification targets with targets of $\frac{\epsilon}{k-1}$ and $1-\epsilon$ respectively.
Source: Deep Learning, Goodfellow et al
Image Source: When Does Label Smoothing Help?
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