Hi. If the Survey123 select_one question has an associated geodatabase domain, you will see the label in both the Survey123 website as well as in other ArcGIS apps. If there is no geodatabase domain associated to the question, then you will see the name, except if Survey123 renders the form.
Survey123 automatically creates a domain for select_one questions, except if you use a choice filter. For example:

For the country question you will see always labels because a domain will be created. The actual value stored in the database is the country code, but you will see the label because the domain does the mapping of values to labels across all ArcGIS apps.
The cities question is different, because it has a choice_filter. Select_one questions with choice filters typically have many choices, so Survey123 will not create a domain (large domains in ArcGIS can be problematic). For this reason, you will see the name rather than the label, except if you use the Survey123 web or field apps to display the data.
Understanding all the above, you can do the following to store the label:
1- Add a new calculate column and use the jr:choice-name function to extract the label
2- Optionally set the select_one field type to null so the code is not stored in the database
Attaching the XLSFile so you can see the whole thing.