The labyrinths are a type of sealing mechanism. These are regularly used for the purpose.
There is quite a bit of theory about the design of it, and can not be covered here.
In brief, the shape of labyrinth creates a baffle in free flow, and then one of the rotating elements create a pressure vortex and eddy inside, that does not permit the external dust to simply barge in.
These can be pressurised labyrinth (where a seal air is used to aid) or unpressurised, as is your case, where the rotation itself creates the disturbance in the air to seal.
You can google "Labyrinth Seal" and a lot of links can be had or better even a few good books are there on this aspect.
Can not name them at the moment, studied a few years back when designed one for our application, but you can search them out at the google books.
They are good, but again application specific, like other sealing mechanism like gland, O ring, lip or mech seals. The main adbvantage, as I said is the non contact property. But some times a bit of oil leakage can be expected if not a pressurised one. Good for dust sealing unless you have a jet of dust impinging.
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