In many human-annotated NLP tasks involving ambiguity or subjective judgment, annotator disagreement reflects epistemic uncertainty rather than noise. Soft labeling (SL), which represents annotations as probability distributions rather than majority-vote (MV) labels, preserves this uncertainty and can improve downstream performance. We extend this perspective to LLM-based annotation by formalizing LLM soft labeling as introducing controlled variation in model-generated annotations to approximate the latent variability underlying human annotations. We distinguish two sources of variation: model-induced (e.g., stochastic decoding and model ensembles) and human-approximated (e.g., persona prompting and human-calibrated in-context annotation). Using the Gab Hate and GoEmotions datasets, we show that SL training consistently outperforms MV training under stronger LLM-based annotation strategies. Model ensembles produce the most informative soft-label distributions, achieving the best human–LLM agreement and downstream classification performance. These findings suggest that scalable LLM-based annotation pipelines can model epistemic uncertainty through diverse model-level variation without explicitly simulating human attributes.