Given the information in your comment, that the labels are about
[...] placing furniture in a room. So for example some times we want
the couch placed on the left hand side of the room. Other times we
want it placed on the right side of the room. We never want it placed
in the center of the room.
then you can treat them as separate categories like "right side of the room", "center of the room", etc., but much better approach would be to map those categories to two-dimensional coordinates, for example $x \in \{-1, 0, +1\}$ for left, center, right, and $y \in \{-1, 0, +1\}$ for bottom, center, top.
If you want to make the predictions like "the piece of furniture can be either on right side of the room, or on the left side, then you want to be able to predict bi-modal distribution. One of the approaches to such problems would be to treat the outcome variable (or variables) as a mixture distribution. Mixture distribution can be multi-modal, and what your model would predict is the probability of the predicted variables to be in a particular region of the variable space. In your case, you could use mixture density network (Bishop, 1994), using model like
$$\begin{align}
\boldsymbol{h} &= \operatorname{LSTM}(\mathbf{Z}) \\
\boldsymbol{\mu} &= g_\mu(\boldsymbol{h}) \\
\boldsymbol{\Sigma} &= g_\sigma(\boldsymbol{h}) \\
\boldsymbol{\pi} &= g_\pi(\boldsymbol{h}) \\
(x, y) &\sim \sum_{i=1}^k \pi_i \,\mathcal{N}(\boldsymbol{\mu}_i, \boldsymbol{\Sigma}_i)
\end{align}$$
where $g_\mu$, $g_\sigma$, and $g_\pi$ are sub-networks (e.g. dense layer, followed by activation function) mapping the latent variables $\boldsymbol{h}$ to mean $\boldsymbol{\mu}$, covariance $\boldsymbol{\Sigma}$, and mixing proportions $\boldsymbol{\pi}$ of the mixture of bivariate normal distributions, and $\mathbf{Z}$ are the features. Notice that this model would enable us to assume correlation between the dimensions, so if something usually appears on "top left" corner, then the model would be able to learn such relation. This is a simplification of MDN-RNN network described by Ha and Schmidhuber (2018).
Bishop, C.M. (1994). Mixture Density Networks. Technical Report NCRG/4288, Aston University, Birmingham, UK.
Ha, D., and Schmidhuber, J. (2018). Recurrent world models facilitate policy evolution. In Advances in Neural Information Processing Systems (pp. 2450-2462).