This is a general question, but I will provide a real scenario that occurred which prompted me to ask this question:
I took over a project and noticed that one of the variables "conflict event type" has a basic structure of "less violent" -> "more violent" over 6 levels from "protests" -> "battles" and am wondering if I should leave it as is or convert to label encoding.
I had, up to this point, always created an ordered mapping to encode ordinal categories. It never crossed my mind to do otherwise. I thought "Well, if the order isn't helpful, then the neural network will likely marginalize it anyway."
I realized that I don't have any evidence that this is true, and have never read it anywhere.
So, in general, is there ever a reason to one-hot encode data that has an obvious underlying order?