I see, you are quite close, you just have to move some stuff around.
Just to confirm, you want positionError to say "full" if there is text, and "Empty" if there isn't?
Also, I'm assuming position is a text input here.
In this case, try this code, except in the "Text" Property of the label:
If(!IsBlank(position.Text), "Full", "Empty")
This, inside the text property of the error label, will change the text to be "Empty" when position is empty, and "Full" when it's not
Just for future reference, one key thing to remember when trying to update labels and other controls automatically - it generally can't be done outside of the controls defining property, without the use of variables or some other fiddling around.