Space: the final frontier. Depending on your approach to graphic design, that statement is true of both the galaxy and the words in your display. The distance between letters, words and lines of text greatly influences its look and feel.
When it comes to type, space is identified three different ways. First is tracking, which describes the amount of space between the letters in a single word. Characters that are too far apart look disconnected, while ones too close together look confined.
Next is the kerning – the space between two individual letters. Pay very close attention to kerning, as you can end up creating a word you didn't mean if you're not careful.
Finally, there's leading: the space between individual lines of text. The human eye needs a bit of buffer room when reading a paragraph, so each line needs a little distance from the rest.