Question

what’s the space between letters called?

Answer 1

space between them is called gap, distance,etc.
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Answer 2

Letter spacing is the gaping amid all the characters in a portion of text. It is commonly called “tracking.” Elaborately, in typography, this refers to the total space between a set of characters to influence density in any line or a block of content. This also helps in making a page appear a little more appealing and open. For example, a big headline is always benefited by the contraction in tracking as well as footnotes or captions appears to be more readable by extending the letter-spacing among them.

Answer: Tracking.