Is there any standard component on the community which can display custom label that supports translation?
If we need to put some text in the community so that this text can be translated, should we develop a custom component or does any standard component which supports that?
Actaully, many standard components support that. For example, Rich Content Editor supports if multilingual Community feature is used to translate it.
There are steps defined to implement this in this article https://help.salesforce.com/articleView?id=community_builder_multilingual_create.htm&type=5
Set the default language for your community. It’s important to set the default language before you add translated content to your community. https://help.salesforce.com/articleView?id=community_builder_multilingual_default.htm&type=5
Add languages to the community. https://help.salesforce.com/articleView?id=community_builder_multilingual_add.htm&type=5
Set options for each language, such as the display label and fallback language. https://help.salesforce.com/articleView?id=community_builder_multilingual_settings.htm&type=5
Either translate content directly on the page in Experience Builder or export and prepare the content, and send it for translation and then import the translated content.
a. Edit language content on the page https://help.salesforce.com/articleView?id=community_builder_multilingual_editing_about.htm&type=5
b. Export content https://help.salesforce.com/articleView?id=community_builder_multilingual_export.htm&type=5#community_builder_multilingual_export
c. Import content https://help.salesforce.com/articleView?id=community_builder_multilingual_import.htm&type=5#community_builder_multilingual_import
Add a Language Selector component to your community pages, so unauthenticated community users can choose their preferred language. https://help.salesforce.com/articleView?id=rss_language_picker.htm&type=5#rss_language_picker
