As far as Lps most likely but in the 78 world very common. As for cropping image, usually just crop as normal but use the notes section to indicate the size of the label if this is noteworthy. Also the image approval list is separate from the record approval list so the mod would just consider the label badly cropped. Having checked image history it was me.

My copy of The Rolling Stones: Rolled Gold, with the black labels has these "small" labels, but others with black labels cover the whole surface:

The Rolling Stones: Rolled Gold

There is also a Charisma Mad Hatter record label which is smaller than normal. The diameter of this paper label is about 1 cm smaller than the average label. I had never seen that before! Another Monty Python Record
I cropped the images to the size of a normal label to show the difference with a normal size label, leaving a black vinyl ring (which is not according to the Image Guidelines). I also asked not to edit these images. But my moderator made these images editable………

My questions are:
1: Does anyone know if there are more records with these small labels or is this another silly Monty Python thingy?
2: If a label has a different size, shouldn’t we make this visible (like I tried to do)?

While this is only anecdotal evidence, I've found with a couple of mine (and a couple of observations of others), that in the UK, it seems to have been Decca (Deram, maybe others Decca made) who went in for the small labels briefly in the early seventies... but quickly abandoned them.

I recently acquired a large collection of Monty Python records which I started uploading on this site. And, as these are Monty Python records, nothing seems normal.
- An old classical record sleeve is scratched out and reused ;
- record labels do not have the track listings but absurd stories;
- An enormous amount of different label variations;
- all kind of gadgets tucked away like double grooved, locked groove, a free flexi disc, inserts “to become a great actor”, a sleeve which can be folded out into a box, insert sleeves with fake records, etc. More silliness than in a Jack White album.

It’s a lot of fun going through all this.

But here’s my thing. There is also a Charisma Mad Hatter record label which is smaller than normal. The diameter of this paper label is about 1 cm smaller than the average label. I had never seen that before! Another Monty Python Record
I cropped the images to the size of a normal label to show the difference with a normal size label, leaving a black vinyl ring (which is not according to the Image Guidelines). I also asked not to edit these images. But my moderator made these images editable………

My questions are:
1: Does anyone know if there are more records with these small labels or is this another silly Monty Python thingy?
2: If a label has a different size, shouldn’t we make this visible (like I tried to do)?