In this paper, we propose mean squared error (MSE) loss with outlying label for class imbalanced classification. Cross entropy (CE) loss, which is widely used for image recognition, is learned so that the probability value of true class is closer to one by back propagation. However, for imbalanced datasets, the learning is insufficient for the classes with a small number of samples. Therefore, we propose a novel classification method using the MSE loss that can be learned the relationships of all classes no matter which image is input. Unlike CE loss, MSE loss is possible to equalize the number of back propagation for all classes and to learn the feature space considering the relationships between classes as metric learning. Furthermore, instead of the usual one-hot teacher label, we use a novel teacher label that takes the number of class samples into account. This induces the outlying label which depends on the number of samples in each class, and the class with a small number of samples has outlying margin in a feature space. It is possible to create the feature space for separating high-difficulty classes and low-difficulty classes. By the experiments on imbalanced classification and semantic segmentation, we confirmed that the proposed method was much improved in comparison with standard CE loss and conventional methods, even though only the loss and teacher labels were changed.