The Summary of Create Fishnet (Data Management) tool states: Creates a fishnet of rectangular cells. The output can be polyline or polygon features. Please add label to {geometry_type} option of this tool , then the output can be polyline, polygon or label features.
Currently, setting the {labels} option to 'LABELS' creates a point feature class, but {geometry_type} must also be set to 'polyline' or 'polygon' to output those geometries with labels. Introducing a 'label-only' option could improve tool performance by generating only the labels when they are needed.
