WordPress Security Standards want me to escape my html, but how to do it correctly?

php wordpress elementor codesniffer

PHP Snippet 1:

$output = "<HTML>
    <form>
        <div>
            <label>$i_am</label>
            <input type='text' name='i_am' value='' />
        </div>
        <div>
            <label>$and_i_am_looking_for</label>
            <input type='text' name='and_i_am_looking_for' value='' />
        </div>
    </form>
</HTML>";

PHP Snippet 2:

echo wp_kses(
    $output,
    array(
        'form'  => array(),
        'div'   => array(),
        'label' => array(),
        'input' => array(
            'type',
            'name',
            'value',
        ),
    )
);