Hi! Unfortunately, I am not aware of a setting to change that. The spacing seems to corelate to the section label letter 'M.' The bigger the font, the narrower the gap.
Many thanks!
Go to the Ideas forum and create a post about More Control Over Section View Lines/Text/Etc
You can reposition the text, but I suspect that you would like them all automatically positioned, just slightly differently from what it does now. When you reposition them it is up to you to try to get them sort of lined up the same for each and every one. When trying to cram to many views on one sheet, or occasionally with things like smaller sections on bigger parts there is no way to drag the arrow to have the letter not end up obscured by parts, sometimes I want the letter above or below, or both of them outside or inside, or maybe one is okay but the other just has to go somewhere else - but it would be nice if you didn't have to eyeball it and had a setting or even just some places to snap to.
When you create that Idea, post the link back here so anyone finding this can go vote on it. Thank you.