You can adjust letter, word and line spacings via object properties.
Double-click a selected lettering object or right-click the Lettering icon to access object properties.
Enter Spacing as absolute values (mm) or percentages of the height.
Letter Spacing: the space between letters.
Word Spacing: the space between words.
Line Spacing: the space between lines.
Tip: If you want to remove spacing between words, set Word Spacing to 0%.