diff --git a/src/panels/config/automation/ha-automation-picker.ts b/src/panels/config/automation/ha-automation-picker.ts
index 9ef1e1c585..4d4773e05e 100644
--- a/src/panels/config/automation/ha-automation-picker.ts
+++ b/src/panels/config/automation/ha-automation-picker.ts
@@ -1,7 +1,7 @@
+import "@home-assistant/webawesome/dist/components/divider/divider";
 import { ResizeController } from "@lit-labs/observers/resize-controller";
 import { consume } from "@lit/context";
 import {
-  mdiChevronRight,
   mdiCog,
   mdiContentDuplicate,
   mdiDelete,
@@ -36,7 +36,6 @@ import { fireEvent } from "../../../common/dom/fire_event";
 import { computeStateName } from "../../../common/entity/compute_state_name";
 import { navigate } from "../../../common/navigate";
 import { slugify } from "../../../common/string/slugify";
-import "../../../components/ha-tooltip";
 import type { LocalizeFunc } from "../../../common/translations/localize";
 import {
   hasRejectedItems,
@@ -51,16 +50,15 @@ import type {
 } from "../../../components/data-table/ha-data-table";
 import "../../../components/data-table/ha-data-table-labels";
 import "../../../components/entity/ha-entity-toggle";
+import "../../../components/ha-dropdown";
+import "../../../components/ha-dropdown-item";
+import type { HaDropdownItem } from "../../../components/ha-dropdown-item";
 import "../../../components/ha-fab";
 import "../../../components/ha-filter-blueprints";
 import "../../../components/ha-filter-categories";
 import "../../../components/ha-filter-devices";
 import "../../../components/ha-filter-entities";
 import "../../../components/ha-filter-floor-areas";
-import "@home-assistant/webawesome/dist/components/divider/divider";
-import "../../../components/ha-dropdown";
-import "../../../components/ha-dropdown-item";
-import type { HaDropdownItem } from "../../../components/ha-dropdown-item";
 import "../../../components/ha-filter-labels";
 import "../../../components/ha-icon-button";
 import "../../../components/ha-md-divider";
@@ -69,6 +67,7 @@ import type { HaMdMenu } from "../../../components/ha-md-menu";
 import "../../../components/ha-md-menu-item";
 import type { HaMdMenuItem } from "../../../components/ha-md-menu-item";
 import "../../../components/ha-svg-icon";
+import "../../../components/ha-tooltip";
 import { createAreaRegistryEntry } from "../../../data/area_registry";
 import type { AutomationEntity } from "../../../data/automation";
 import {
@@ -412,27 +411,37 @@ class HaAutomationPicker extends SubscribeMixin(LitElement) {
     ];
   }
 
-  protected render(): TemplateResult {
-    const categoryItems = html`${this._categories?.map(
+  private _renderCategoryItems = (submenu = false) =>
+    html`${this._categories?.map(
         (category) =>
-          html`<ha-dropdown-item .value=${category.category_id}>
+          html`<ha-dropdown-item
+            .slot=${submenu ? "submenu" : ""}
+            .value=${category.category_id}
+          >
             ${category.icon
               ? html`<ha-icon slot="icon" .icon=${category.icon}></ha-icon>`
               : html`<ha-svg-icon slot="icon" .path=${mdiTag}></ha-svg-icon>`}
             ${category.name}
           </ha-dropdown-item>`
       )}
-      <ha-dropdown-item value="__no_category__">
+      <ha-dropdown-item
+        .slot=${submenu ? "submenu" : ""}
+        value="__no_category__"
+      >
         ${this.hass.localize(
           "ui.panel.config.automation.picker.bulk_actions.no_category"
         )}
       </ha-dropdown-item>
-      <wa-divider></wa-divider>
-      <ha-dropdown-item value="__create_category__">
+      <wa-divider .slot=${submenu ? "submenu" : ""}></wa-divider>
+      <ha-dropdown-item
+        .slot=${submenu ? "submenu" : ""}
+        value="__create_category__"
+      >
         ${this.hass.localize("ui.panel.config.category.editor.add")}
       </ha-dropdown-item>`;
 
-    const labelItems = html`${this._labels?.map((label) => {
+  private _renderLabelItems = (submenu = false) =>
+    html`${this._labels?.map((label) => {
         const color = label.color ? computeCssColor(label.color) : undefined;
         const selected = this._selected.every((entityId) =>
           this.hass.entities[entityId]?.labels.includes(label.label_id)
@@ -443,10 +452,10 @@ class HaAutomationPicker extends SubscribeMixin(LitElement) {
             this.hass.entities[entityId]?.labels.includes(label.label_id)
           );
         return html`<ha-dropdown-item
+          .slot=${submenu ? "submenu" : ""}
           .value=${label.label_id}
           data-action=${selected ? "remove" : "add"}
           @click=${this._handleBulkLabel}
-          keep-open
         >
           <ha-checkbox
             slot="icon"
@@ -465,17 +474,22 @@ class HaAutomationPicker extends SubscribeMixin(LitElement) {
           </ha-label>
         </ha-dropdown-item>`;
       })}
-      <wa-divider></wa-divider>
+      <wa-divider .slot=${submenu ? "submenu" : ""}></wa-divider>
       <ha-dropdown-item
+        .slot=${submenu ? "submenu" : ""}
         value="__create_label__"
         @click=${this._bulkCreateLabel}
       >
         ${this.hass.localize("ui.panel.config.labels.add_label")}
       </ha-dropdown-item>`;
 
-    const areaItems = html`${Object.values(this.hass.areas).map(
+  private _renderAreaItems = (submenu = false) =>
+    html`${Object.values(this.hass.areas).map(
         (area) =>
-          html`<ha-dropdown-item .value=${area.area_id}>
+          html`<ha-dropdown-item
+            .slot=${submenu ? "submenu" : ""}
+            .value=${area.area_id}
+          >
             ${area.icon
               ? html`<ha-icon slot="icon" .icon=${area.icon}></ha-icon>`
               : html`<ha-svg-icon
@@ -485,18 +499,22 @@ class HaAutomationPicker extends SubscribeMixin(LitElement) {
             ${area.name}
           </ha-dropdown-item>`
       )}
-      <ha-dropdown-item value="__no_area__">
+      <ha-dropdown-item .slot=${submenu ? "submenu" : ""} value="__no_area__">
         ${this.hass.localize(
           "ui.panel.config.devices.picker.bulk_actions.no_area"
         )}
       </ha-dropdown-item>
-      <wa-divider></wa-divider>
-      <ha-dropdown-item value="__create_area__">
+      <wa-divider .slot=${submenu ? "submenu" : ""}></wa-divider>
+      <ha-dropdown-item
+        .slot=${submenu ? "submenu" : ""}
+        value="__create_area__"
+      >
         ${this.hass.localize(
           "ui.panel.config.devices.picker.bulk_actions.add_area"
         )}
       </ha-dropdown-item>`;
 
+  protected render(): TemplateResult {
     const areasInOverflow =
       (this._sizeController.value && this._sizeController.value < 900) ||
       (!this._sizeController.value && this.hass.dockedSidebar === "docked");
@@ -647,7 +665,7 @@ class HaAutomationPicker extends SubscribeMixin(LitElement) {
                     .path=${mdiMenuDown}
                   ></ha-svg-icon>
                 </ha-assist-chip>
-                ${categoryItems}
+                ${this._renderCategoryItems()}
               </ha-dropdown>
               ${labelsInOverflow
                 ? nothing
@@ -663,7 +681,7 @@ class HaAutomationPicker extends SubscribeMixin(LitElement) {
                         .path=${mdiMenuDown}
                       ></ha-svg-icon>
                     </ha-assist-chip>
-                    ${labelItems}
+                    ${this._renderLabelItems()}
                   </ha-dropdown>`}
               ${areasInOverflow
                 ? nothing
@@ -682,7 +700,7 @@ class HaAutomationPicker extends SubscribeMixin(LitElement) {
                         .path=${mdiMenuDown}
                       ></ha-svg-icon>
                     </ha-assist-chip>
-                    ${areaItems}
+                    ${this._renderAreaItems()}
                   </ha-dropdown>`}`
           : nothing}
         <ha-dropdown
@@ -714,31 +732,7 @@ class HaAutomationPicker extends SubscribeMixin(LitElement) {
                 ${this.hass.localize(
                   "ui.panel.config.automation.picker.bulk_actions.move_category"
                 )}
-                <ha-svg-icon
-                  slot="details"
-                  .path=${mdiChevronRight}
-                ></ha-svg-icon>
-                ${this._categories?.map(
-                  (category) =>
-                    html`<ha-dropdown-item
-                      slot="submenu"
-                      .value=${category.category_id}
-                    >
-                      ${category.icon
-                        ? html`<ha-icon slot="icon" .icon=${category.icon}></ha-icon>`
-                        : html`<ha-svg-icon slot="icon" .path=${mdiTag}></ha-svg-icon>`}
-                      ${category.name}
-                    </ha-dropdown-item>`
-                )}
-                <ha-dropdown-item slot="submenu" value="__no_category__">
-                  ${this.hass.localize(
-                    "ui.panel.config.automation.picker.bulk_actions.no_category"
-                  )}
-                </ha-dropdown-item>
-                <wa-divider slot="submenu"></wa-divider>
-                <ha-dropdown-item slot="submenu" value="__create_category__">
-                  ${this.hass.localize("ui.panel.config.category.editor.add")}
-                </ha-dropdown-item>
+                ${this._renderCategoryItems(true)}
               </ha-dropdown-item>`
             : nothing}
           ${this.narrow || labelsInOverflow
@@ -746,52 +740,7 @@ class HaAutomationPicker extends SubscribeMixin(LitElement) {
                 ${this.hass.localize(
                   "ui.panel.config.automation.picker.bulk_actions.add_label"
                 )}
-                <ha-svg-icon
-                  slot="details"
-                  .path=${mdiChevronRight}
-                ></ha-svg-icon>
-                ${this._labels?.map((label) => {
-                  const color = label.color ? computeCssColor(label.color) : undefined;
-                  const selected = this._selected.every((entityId) =>
-                    this.hass.entities[entityId]?.labels.includes(label.label_id)
-                  );
-                  const partial =
-                    !selected &&
-                    this._selected.some((entityId) =>
-                      this.hass.entities[entityId]?.labels.includes(label.label_id)
-                    );
-                  return html`<ha-dropdown-item
-                    slot="submenu"
-                    .value=${label.label_id}
-                    data-action=${selected ? "remove" : "add"}
-                    @click=${this._handleBulkLabel}
-                    keep-open
-                  >
-                    <ha-checkbox
-                      slot="icon"
-                      .checked=${selected}
-                      .indeterminate=${partial}
-                      reducedTouchTarget
-                    ></ha-checkbox>
-                    <ha-label
-                      style=${color ? `--color: ${color}` : ""}
-                      .description=${label.description}
-                    >
-                      ${label.icon
-                        ? html`<ha-icon slot="icon" .icon=${label.icon}></ha-icon>`
-                        : nothing}
-                      ${label.name}
-                    </ha-label>
-                  </ha-dropdown-item>`;
-                })}
-                <wa-divider slot="submenu"></wa-divider>
-                <ha-dropdown-item
-                  slot="submenu"
-                  value="__create_label__"
-                  @click=${this._bulkCreateLabel}
-                >
-                  ${this.hass.localize("ui.panel.config.labels.add_label")}
-                </ha-dropdown-item>
+                ${this._renderLabelItems(true)}
               </ha-dropdown-item>`
             : nothing}
           ${this.narrow || areasInOverflow
@@ -799,33 +748,7 @@ class HaAutomationPicker extends SubscribeMixin(LitElement) {
                 ${this.hass.localize(
                   "ui.panel.config.devices.picker.bulk_actions.move_area"
                 )}
-                <ha-svg-icon
-                  slot="details"
-                  .path=${mdiChevronRight}
-                ></ha-svg-icon>
-                ${Object.values(this.hass.areas).map(
-                  (area) =>
-                    html`<ha-dropdown-item slot="submenu" .value=${area.area_id}>
-                      ${area.icon
-                        ? html`<ha-icon slot="icon" .icon=${area.icon}></ha-icon>`
-                        : html`<ha-svg-icon
-                            slot="icon"
-                            .path=${mdiTextureBox}
-                          ></ha-svg-icon>`}
-                      ${area.name}
-                    </ha-dropdown-item>`
-                )}
-                <ha-dropdown-item slot="submenu" value="__no_area__">
-                  ${this.hass.localize(
-                    "ui.panel.config.devices.picker.bulk_actions.no_area"
-                  )}
-                </ha-dropdown-item>
-                <wa-divider slot="submenu"></wa-divider>
-                <ha-dropdown-item slot="submenu" value="__create_area__">
-                  ${this.hass.localize(
-                    "ui.panel.config.devices.picker.bulk_actions.add_area"
-                  )}
-                </ha-dropdown-item>
+                ${this._renderAreaItems(true)}
               </ha-dropdown-item>`
             : nothing}
           <ha-dropdown-item value="enable">
@@ -1338,6 +1261,7 @@ ${rejected
   }
 
   private async _handleBulkLabel(ev) {
+    ev.stopPropagation();
     const label = ev.currentTarget.value;
     const action = ev.currentTarget.dataset.action;
     this._bulkLabel(label, action);