Both sets of labia help protect the opening of the vagina and urethra. The labia majora are the main protection, having some fat for padding, and create the closure of everything when standing up so that all you see is a line and not the urethra or the vagina. The labia minora help provide extra protection, but there's a huge amount of variability in shape and size, from practically non-existent to huge, so it would seem that that function isn't as important. In one study of 50 women, researchers found a range of widths from 7 mm to 50 mm. That's less than half an inch to about 2 inches, which is a pretty big range. Get out a ruler and see what 7 mm looks like, and keep in mind that there were only 50 women in the study, so the absolute bottom range could be even smaller.
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Could u tell me what the labia minora actually does?? I know what it does physically but whats the use of it?
Some people just have very small labia minora. Or you could be confusing the labia minora with labia majora, and then, seeing nothing inside those, think there's something wrong. The scratching could have made things inflamed, and when you stopped scratching, they shrank. If nothing's infected, it's not something to worry about anyway. Any sexual partner who cares about you won't mind, and it won't get in the way of any sexual activity.
If you google labia minora (do it in private!), you'll see a huge variation in labia shapes and sizes. Some women have labia minora that stick out like butterfly wings, and they sometimes get self conscious about it. Others have very small ones.