Note: I found this somewhere on the internet … but I can’t remember where.

Sometimes there just isn’t enough room for the all the text underneath those icons. Or, you maybe you are having some kind of overlapping problem. You can fix this by adjusting the space between your icons.

There is an invisible grid on your desktop the computer uses to place icons and associated text in to. This grid sort of looks like a checker board. You can adjust the size of the boxes. Here’s how:
Right click on any empty spot on your desktop. Click Properties, and then click the appearance tab. Next click the advanced button and you should find yourself in the “Advanced Appearances” window. Click on the pull-down window under “Item” and select “Icon spacing (horizontal). Note there is also an “icon spacing) vertical too. Click on the size arrows to adjust icon size. Do the same with Vertical. You will need to work at this some until you get the size/spacing you want. Click ok.

Note: You may have to uncheck and recheck the “Align to grid” option before your icons will move into place. Here’s how: Right click on any empty spot on your desktop. From the menu select “Arrange icons by” and click on “Align to grid” to uncheck it and then click to option again to recheck it. Once you do that your icons will move to your new grid settings.