A question that I’ve seen asked many time on the web is people asking how to shorten their Grafana legend/label.
E.g. using hostname as a legend will usually return the full FQDN, which can be too long if you have many hosts and make a mess of your panel.

Lots of searching show people having similar questions and a number of request for enhancements. In my case, there is a simple solution that work. Here is how.
Use the function label_replace(). So
rate(nginx_http_requests_total{instance=~"$instance", host="$host"}[5m])
turn into
label_replace(rate(nginx_http_requests_total{instance=~"$instance", host="$host"}[5m]), "hname", "$1", "instance", "(.*).foo.bar.local")
And the legend format changed from
{{instance}}-{{status}} to {{hname}}-{{status}}

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