What controls the text spacing with Automatic Coordinate Dimension tool
Solution
This is controlled by the "Text clearance gap" which is a setting in the dimension style. You will click the Style button, which is the button which looks like an upper case slanted A with a much smaller A right next to and above it on the same button. Select Dimension from the list of style types and then pick the actual style you are using. Click on the Modify button and go to the Spacing tab. The item you are looking for is at the top of the list. This is a multiple of the font size.
Notes and References
Hardware/Software Configuration
Platform: INTEL
OS: windows
OS Version: 764SP1
Product: SOLID_EDGE
Application: DRAFT
Version: V219.0
Function: DIMENSIONS
Ref: 001-9533521