diff --git a/packages/block-library/src/navigation-link/edit.js b/packages/block-library/src/navigation-link/edit.js
index b91015313f4039..96d6f16926a669 100644
--- a/packages/block-library/src/navigation-link/edit.js
+++ b/packages/block-library/src/navigation-link/edit.js
@@ -181,6 +181,10 @@ export default function NavigationLinkEdit( {
 	const itemLabelPlaceholder = __( 'Add label…' );
 	const ref = useRef();
 
+	// Change the label using inspector causes rich text to change focus on firefox.
+	// This is a workaround to keep the focus on the label field when label filed is focused we don't render the rich text.
+	const [ isLabelFieldFocused, setIsLabelFieldFocused ] = useState( false );
+
 	const {
 		innerBlocks,
 		isAtMaxNesting,
@@ -424,6 +428,8 @@ export default function NavigationLinkEdit( {
 						} }
 						label={ __( 'Label' ) }
 						autoComplete="off"
+						onFocus={ () => setIsLabelFieldFocused( true ) }
+						onBlur={ () => setIsLabelFieldFocused( false ) }
 					/>
 					<TextControl
 						__nextHasNoMarginBottom
@@ -492,52 +498,56 @@ export default function NavigationLinkEdit( {
 						</div>
 					) : (
 						<>
-							{ ! isInvalid && ! isDraft && (
-								<>
-									<RichText
-										ref={ ref }
-										identifier="label"
-										className="wp-block-navigation-item__label"
-										value={ label }
-										onChange={ ( labelValue ) =>
-											setAttributes( {
-												label: labelValue,
-											} )
-										}
-										onMerge={ mergeBlocks }
-										onReplace={ onReplace }
-										__unstableOnSplitAtEnd={ () =>
-											insertBlocksAfter(
-												createBlock(
-													'core/navigation-link'
+							{ ! isInvalid &&
+								! isDraft &&
+								! isLabelFieldFocused && (
+									<>
+										<RichText
+											ref={ ref }
+											identifier="label"
+											className="wp-block-navigation-item__label"
+											value={ label }
+											onChange={ ( labelValue ) =>
+												setAttributes( {
+													label: labelValue,
+												} )
+											}
+											onMerge={ mergeBlocks }
+											onReplace={ onReplace }
+											__unstableOnSplitAtEnd={ () =>
+												insertBlocksAfter(
+													createBlock(
+														'core/navigation-link'
+													)
 												)
-											)
-										}
-										aria-label={ __(
-											'Navigation link text'
-										) }
-										placeholder={ itemLabelPlaceholder }
-										withoutInteractiveFormatting
-										allowedFormats={ [
-											'core/bold',
-											'core/italic',
-											'core/image',
-											'core/strikethrough',
-										] }
-										onClick={ () => {
-											if ( ! url ) {
-												setIsLinkOpen( true );
 											}
-										} }
-									/>
-									{ description && (
-										<span className="wp-block-navigation-item__description">
-											{ description }
-										</span>
-									) }
-								</>
-							) }
-							{ ( isInvalid || isDraft ) && (
+											aria-label={ __(
+												'Navigation link text'
+											) }
+											placeholder={ itemLabelPlaceholder }
+											withoutInteractiveFormatting
+											allowedFormats={ [
+												'core/bold',
+												'core/italic',
+												'core/image',
+												'core/strikethrough',
+											] }
+											onClick={ () => {
+												if ( ! url ) {
+													setIsLinkOpen( true );
+												}
+											} }
+										/>
+										{ description && (
+											<span className="wp-block-navigation-item__description">
+												{ description }
+											</span>
+										) }
+									</>
+								) }
+							{ ( isInvalid ||
+								isDraft ||
+								isLabelFieldFocused ) && (
 								<div className="wp-block-navigation-link__placeholder-text wp-block-navigation-link__label">
 									<Tooltip
 										position="top center"
@@ -557,7 +567,11 @@ export default function NavigationLinkEdit( {
 													// See `updateAttributes` for more details.
 													`${ decodeEntities(
 														label
-													) } ${ placeholderText }`.trim()
+													) } ${
+														isInvalid || isDraft
+															? placeholderText
+															: ''
+													}`.trim()
 												}
 											</span>
 											<span className="wp-block-navigation-link__missing_text-tooltip">