This is something I'm completely ignorant about so I'm curious: in this day and age, what does a label bring to the table? You could release your stuff through Bandcamp, order shirts to be printed, but I'm probably missing something.
At the end of the day, it depends on what you want to do with your band. But, generally speaking, a label brings Money; for professional recording, production of a physical release, PR, and distribution deals. Also name recognition of the label counts. Some people check out everything Metal Blade puts out, or Relapse, or Nuclear Blast. Especially for underground music, label loyalties, however how small, can matter to an underground band. Anyway, this money and name recognition hopefully means your band is heard by more people. If that is your bands goal, a label can make sense.
As far as recording, yes, many people can make good recordings at home or on a budget. But there is another level of engineering, mixing, producing, and mastering that a real seasoned professional can attain that most basement recordings can't.
Physical production, in some circles, is a big deal. In non-mainstream rock/metal it continues to be a large part of sales. Take me, for example: I buy and listen to records. I expect the bands I like to have one. Ill support them if they don't, but many people still buy physical media. We sell a decent amount of cd's when we're in Europe (and in the US to a lesser degree).
PR matters. You can generally hire this out, but your budget will definitely affect how much work they do on your behalf. Many labels have internal PR too. The professional PR relationships to get your album reviewed or to set up a podcast take time to form. It's hard to gain access if you don't have these relationships. Getting a simple review on a blog, good or bad, can really help move a band along.
I guess advertising is kind of part of PR too? The budget for getting your new release advertised in a magazine isn't something most bands can pony up the cash for; but even small labels can usually justify some expenditure along those lines. I read Decibel magazine every month and I look at the ads for what has just come out and what labels are pushing. I know I'm not the only one.
Distribution deals are big for getting your stuff out there. Distributors will often even handle streaming services too. The streaming thing, beyond bandcamp, is something that can be done without a label, but it sure makes it easier. Also the royalties for streaming are so negligible that what ever cut the label/distro might take is inconsequential ( if your not getting millions of listens). For physical media, it is really hard to get a record store in another city. Stores rely on distributors to fill their racks; they don't go to bandcamp or even to the labels themselves, to buy their product. Heck, even in Denver, most places will try to consign a local bands record, but will sometimes buy it direct from their distributors?
All of this is essentially a loan from the label to the band. The cost of that loan is that the band usually doesn't make poopie off album sales in the short term, and, let's be honest, probably not in the long term either. It's a sacrifice a lot of bands are willing to make to get their music heard by a larger audience. There are some small/DIY-ish labels out there that really help bands and give them a fair deal... they are few and far between but they do exist. I'm not defending or advocating for being with a label or not, it's definitely not right or required for everyone... but they can bring some stuff to the proverbial table.