When you convert labels to Mtext, you place the text on an AutoCAD layer. When you convert labels to a text layer, you can store it in an existing data store or as a new SDF or SQLite data store.
To convert labels to a text layer or to MText
If you create a new layer for the text, it is named to match the feature class name.
Select an existing data store or create a new SDF or SQLite data store.
If you choose an existing data store, AutoCAD Map 3D toolset will append the text attribute to its schema.
If you create a new data store, AutoCAD Map 3D toolset connects to that file and displays the text layer in Display Manager.