Line Spacing
Line spacing is the distance between lines of text. Loose line spacing can make text much more readable, while tight line spacing can fit more text in a space.
To change the line spacing, select the lines you want to change. Then go to the Home tab and find the line spacing button in the Paragraph section. The line spacing button triggers a dropdown menu from which you can select a line spacing.
The numbers in the line spacing dropdown menu reflect how much the line spacing will increase relative to the size of the line. For example, a line spacing of 1 means the line spacing will be as large as one line, a line spacing of 2 means the line spacing will be the size of two lines, and so on.
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Paragraph Spacing
You may have noticed that by default, Word adds a space between each paragraph. You can change the size of that space or eliminate it completely by changing the paragraph spacing. There is an option to Add Space Before Paragraph or Remove Space After Paragraph in the line spacing menu.
For more control over the paragraph spacing, go to the paragraph dialog box.