This paper presents KDBERT-MLDistill, a novel framework for multi-label emotion recognition developed for SemEval-2025 Task 11. Addressing challenges of fine-grained emotion misdetection and small-data overfitting, the method synergizes BERT-based text encoding with orthogonal knowledge distillation. Key innovations include: (1) Orthogonal regularization on classifier weights to minimize redundant feature correlations, coupled with dynamic pseudo-labeling for periodic data augmentation; (2) A hierarchical distillation mechanism where dual teacher-student models iteratively exchange parameters to balance knowledge retention and exploration.