Currently the label setting is a global setting. It effects everything.
You can resize the space after a field by mousing over the right edge of the field. The right edge will highlight and then you click/hold to resize.
Setting labels globally should be optional, setting labels individually is importnant. Feature request!
The spacing I'm talking about is more along the lines of vertical spacing, like leading in all the other Adobe programs.
Vertical spacing can be done using an empty text field - you can change font size and add carriage returns to make it the right height.
So label width is "global", meaning the width of the first item label on my first line adn the width of the first item label on my second line HAVE to be the same width?
Yes, for fields that are the first in a row and that have label position set to Left or Right, they do share a "global" caption reserve (label width). This FAQ goes into a little more detail: