Hub Labeling (HL) is a data structure for distance oracles. Hierarchical HL (HHL) is a special type of HL, that received a lot of attention from a practical point of view. However, theoretical questions such as NP-hardness and approximation guarantee for HHL algorithms have been left aside. In this paper we study HL and HHL from the complexity theory point of view. We prove that both HL and HHL are NP-hard, and present upper and lower bounds for the approximation ratios of greedy HHL algorithms used in practice. We also introduce a new variant of the greedy HHL algorithm and a proof that it produces small labels for graphs with small highway dimension.
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