Adding Data Classification to a Record Type is very easy and provides more detail about each Record Type, and it can be added from settings tab as shown below :



Make sure the Classifications are reflected to your business's Data Classification scheme.
Our Standards are Confidential, Sensitive, Public. 

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Add a Classification 

Click the ADD button. 

A pop up window will appear, type in the Data Classification name and click ADD.

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Remove a Classification

Click the circle next to the Data Classification 

Hit the REMOVE Button, see screenshot below for example.

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Select the REMOVE button on the Pop up window
 
NOTE: If there are Data Classifications tied to a Record Type, you must remove them before you can remove the Classification

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Add Data Classification to a Record Type

On the Business Function Record Type page (Screenshot below), 

Click where it says NONE and a pop up window will appear to add the Data Classification for that particular Record Type, to finish select UPDATE. The change will be made and reflected on reporting and the portal view.

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NOTE: You will have to Approve each area of the Retention Schedule that you add Data Classification too, in order for the changes to reflect in the reporting.