Example damage label

battle/ui/DamageLabel.gd

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+class_name DamageLabel extends Label3D
+
+@export var timer:Timer
+@export var speed:Vector3 = Vector3(0, 1, 0)
+
+func onTimeout() -> void:
+  self.visible = false
+  queue_free()
+  print("Damage label removed")
+
+func _process(delta: float) -> void:
+  self.position += speed * delta
+
+func showDamage(
+  parent:Node3D,
+  amount:int,
+  isCritical:bool
+) -> void:
+  if amount == 0:
+    return
+
+  text = str(amount)
+
+  if amount > 0:
+    # Healing
+    modulate = Color.GREEN
+    outline_modulate = Color.TRANSPARENT
+  elif isCritical:
+    # Crit
+    modulate = Color.RED
+    outline_modulate = Color.BLACK
+  else:
+    # DMG
+    modulate = Color.RED
+    outline_modulate = Color.TRANSPARENT
+
+  parent.add_child(self)
+  self.position = Vector3.ZERO
+
+  timer.timeout.connect(onTimeout)

battle/ui/DamageLabel.gd.uid

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+uid://b86wqbqmsrv5b

battle/ui/DamageLabel.tscn

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+[gd_scene load_steps=2 format=3 uid="uid://baxswkivvo5rs"]
+
+[ext_resource type="Script" uid="uid://b86wqbqmsrv5b" path="res://battle/ui/DamageLabel.gd" id="1_6dg8x"]
+
+[node name="DamageLabel" type="Label3D" node_paths=PackedStringArray("timer")]
+billboard = 1
+render_priority = 1
+outline_modulate = Color(1, 0, 0, 1)
+text = "-%%%%%"
+script = ExtResource("1_6dg8x")
+timer = NodePath("Timer")
+metadata/_custom_type_script = "uid://b86wqbqmsrv5b"
+
+[node name="Timer" type="Timer" parent="."]
+one_shot = true
+autostart = true