This is a good verse to help make the case that there can be more than one meaning for the word ‘law’.  In this verse, the ‘law of the Spirit of life’ is contrasted with ‘the law of sin and death’. One is good and the other is bad.

Please review the sections called Meaning #6 of “Law”: The just consequence of rule-breaking and also Meaning #7 of “Law”: The law of the Spirit of life.

The law of the Spirit of life is explained a few verses later.

“But if Christ is in you, although the body is dead because of sin, the Spirit is life because of righteousness. If the Spirit of him who raised Jesus from the dead dwells in you, he who raised Christ Jesus from the dead will also give life to your mortal bodies through his Spirit who dwells in you.” (Romans 8:10-11) See also Romans 6:1-14.

The law of sin and death is a restatement of Romans 6:23. “The wages of sin is death.” It is a law that the penalty for breaking God’s law [sin] is death.

Two chapters earlier, there are repeated mentions of being set free from sin.

“For one who has died has been set free from sin.” (Romans 6:7)

“and, having been set free from sin, have become slaves of righteousness.” (Romans 6:18)

“But now that you have been set free from sin and have become slaves of God, the fruit you get leads to sanctification and its end, eternal life.” (Romans 6:22)

Romans 8:2 is saying that the Spirit gives eternal life and sets one free from the eternal death penalty of sin. The idea is reminiscent of some of the most famous verses in the Bible.

“For God so loved the world, that he gave his only Son, that whoever believes in him should not perish but have eternal life.” (John 3:16)

“For the wages of sin is death, but the free gift of God is eternal life in Christ Jesus our Lord.” (Romans 6:23)