Liable means legally responsible for something, or likely to do it. Libel is defamation in permanent form — published or written. They appear in the same legal contexts, which is why they get swapped: you can be liable for libel, and that sentence uses both correctly.
The core difference
One is a state of responsibility; the other is a specific wrong.
- liable — legally responsible: liable for damages. Also: likely to — liable to break.
- libel — published defamation: sued for libel.
Libel versus slander
Libel is defamation in permanent form — writing, print, broadcast, online. Slander is spoken. The distinction matters because the two have historically been treated differently in law, with libel generally the more serious because it persists and spreads.
The second sense of liable
"Liable to" meaning likely to — liable to rain — is entirely standard and usually carries a hint of something unwelcome. That sense has nothing to do with legal responsibility.