When using controller on PC pressing LB is expected to switch between ‘Show Items on Ground’ modes, respecting your Item Label Display preference.
I have this option set to ‘Toggle’, so pressing LB should switch between no item display and all items displayed on ground.
As of now the game doesn’t respect this setting or rather resets it back to ‘Timed’ when I make a new game, so the behavior with this setting set to ‘Toggle’ is display all items on ground, but pressing LB switches it to ‘Timed’, as opposed to not displaying items, another press of LB switches back to displaying all items.
The setting seems to persist through the game where you changed it on options screen, but resets to reported behavior in new games.