What is a floating label?
Floating labels display the type of input a field requires. Every Text Field and Select should have a label, except for full-width text fields, which use the input's placeholder attribute instead. Labels are aligned with the input line and always visible.
Are floating labels accessible?
Label Readability
This is standard behavior for floating labels because the label isn't treated with importance after active field selection. The tiny label size makes the text hard to read when users need to check or correct their input. Low vision users will struggle the most to read the tiny text labels.