On cross-section, the Labrum (L) is contiguous with the Articular Cartilage (A) at the rim of the Acetabular bone (B). The ligamentous Capsule (C) attaches to the bone, separate from the Labrum.
In the shoulder, the Capsule attaches with the Labrum, so tears are synonymous with instability. Labral tears in the Hip are more like Meniscus tears in the Knee. They cause pain, catching and locking, but not often instability. Neglect when painful, they can lead to arthritis.