Hi,
I have a couple Babylock embroidery machines, so yours is similar.
The space key looks like an underline, _ and it's on the bottom of the alphabet, think mine is on the right hand side.
Try that. I also find that I prefer to type in my first word, set it, go to the next word, set it, and so forth as the space bar left a wider space than I like.
Good luck!
Bev