In federated learning (FL), classifiers (e.g., deep networks) are trained on datasets from multiple centers without exchanging data across them, and thus improves sample efficiency. In the classical setting of FL, the same labeling criterion is usually employed across all centers being involved in training. This constraint greatly limits the applicability of FL. For example, standards used for disease diagnosis are more likely to be different across clinical centers, which mismatches the classical FL setting. In this paper, we consider an important yet under-explored setting of FL, namely FL with mixed-type labels where different labeling criteria can be employed by various centers, leading to inter-center label space differences and challenging existing FL methods designed for the classical setting. To effectively and efficiently train models with mixed-type labels, we propose a theory-guided and model-agnostic approach that can make use of the underlying correspondence between those label spaces and can be easily combined with various FL methods such as FedAvg. We present convergence analysis based on over-parameterized ReLU networks. We show that the proposed method can achieve linear convergence in label projection, and demonstrate the impact of the parameters of our new setting on the convergence rate. The proposed method is evaluated and the theoretical findings are validated on benchmark and medical datasets.