diff --git a/docs/querying/functions.md b/docs/querying/functions.md
index 16a440165f..848908ca90 100644
--- a/docs/querying/functions.md
+++ b/docs/querying/functions.md
@@ -280,16 +280,14 @@ label_join(up{job="api-server",src1="a",src2="b",src3="c"}, "foo", ",", "src1",
 
 ## `label_replace()`
 
-For each timeseries in `v`, `label_replace(v instant-vector, dst_label string,
-replacement string, src_label string, regex string)` matches the regular
-expression `regex` against the label `src_label`.  If it matches, then the
-timeseries is returned with the label `dst_label` replaced by the expansion of
-`replacement`. `$1` is replaced with the first matching subgroup, `$2` with the
-second etc. If the regular expression doesn't match then the timeseries is
-returned unchanged.
+For each timeseries in `v`, `label_replace(v instant-vector, dst_label string, replacement string, src_label string, regex string)`
+matches the regular expression `regex` against the value of the label `src_label`. If it
+matches, the value of the label `dst_label` in the returned timeseries will be the expansion
+of `replacement`, together with the original labels in the input. Capturing groups in the
+regular expression can be referenced with `$1`, `$2`, etc. If the regular expression doesn't
+match then the timeseries is returned unchanged.
 
-This example will return a vector with each time series having a `foo`
-label with the value `a` added to it:
+This example will return timeseries with the values `a:c` at label `service` and `a` at label `foo`:
 
 ```
 label_replace(up{job="api-server",service="a:c"}, "foo", "$1", "service", "(.*):.*")