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If using a merge field on template that may not have a value with some records (example being to merge “Discount: 10%” though some do not have discounts), is it possible to not merge the field label?

Yes, you can create a formula field with an “if” statement to check if there is a value in the other field and if there is, then display in the formula the label as well as they value. Then merge that field. That way it always merges but merges nothing if no value.