Currently for non file uris we always show the full uri.toString() as a label.
Code pointer

However this should be contributed by the fileSystem provider such that for each uri a label can be provided.
Doing this logic on the vscode side alone seems tricky since for some uris it is useful to show the authority (like ftp for example) and for some it is just noise.

Let me know what you think @jrieken @bpasero