diff --git a/packages/block-library/src/search/edit.js b/packages/block-library/src/search/edit.js
index 3bf965cd0f5f49..48b97e157c2ccc 100644
--- a/packages/block-library/src/search/edit.js
+++ b/packages/block-library/src/search/edit.js
@@ -14,6 +14,7 @@ import {
 	__experimentalUseBorderProps as useBorderProps,
 	__experimentalUnitControl as UnitControl,
 	__experimentalUseColorProps as useColorProps,
+	store as blockEditorStore,
 } from '@wordpress/block-editor';
 import {
 	ToolbarDropdownMenu,
@@ -27,6 +28,8 @@ import {
 	__experimentalUseCustomUnits as useCustomUnits,
 } from '@wordpress/components';
 import { useInstanceId } from '@wordpress/compose';
+import { useDispatch, useSelect } from '@wordpress/data';
+import { useEffect, useRef } from '@wordpress/element';
 import { Icon, search } from '@wordpress/icons';
 import { __ } from '@wordpress/i18n';
 
@@ -54,6 +57,7 @@ const DEFAULT_INNER_PADDING = '4px';
 
 export default function SearchEdit( {
 	className,
+	clientId,
 	attributes,
 	setAttributes,
 	toggleSelection,
@@ -76,6 +80,42 @@ export default function SearchEdit( {
 	const borderColor = style?.border?.color;
 	const borderProps = useBorderProps( attributes );
 
+	const { isNavigationChild } = useSelect(
+		( select ) => {
+			const { getBlockParentsByBlockName } = select( blockEditorStore );
+
+			return {
+				isNavigationChild: !! getBlockParentsByBlockName(
+					clientId,
+					'core/navigation'
+				)?.length,
+			};
+		},
+		[ clientId ]
+	);
+	const { __unstableMarkNextChangeAsNotPersistent } = useDispatch(
+		blockEditorStore
+	);
+
+	const hasChangedDefaults = useRef( false );
+	useEffect( () => {
+		if ( hasChangedDefaults.current ) {
+			return;
+		}
+
+		if ( isNavigationChild && showLabel && ! buttonUseIcon ) {
+			// This side-effect should not create an undo level.
+			__unstableMarkNextChangeAsNotPersistent();
+			setAttributes( {
+				showLabel: false,
+				buttonUseIcon: true,
+				buttonPosition: 'button-inside',
+			} );
+
+			hasChangedDefaults.current = true;
+		}
+	}, [ isNavigationChild, showLabel, buttonUseIcon ] );
+
 	// Check for old deprecated numerical border radius. Done as a separate
 	// check so that a borderRadius style won't overwrite the longhand
 	// per-corner styles.