Are you sure this isn’t just the behavior where iOS tries to squeeze whitespace to make the label fit without truncation? That’s based on the actual size of the text on screen rather than the length in characters.
That said, I tried display name Toronto Hydro on a few different simulators here and it seems ok. The space does get squished a bit on the iPhone SE (1st gen.) but looks normal on larger simulated devices. Are you seeing this problem on all display sizes and all iOS versions?
A couple sanity checks would be to:
Test with simple cases such as A B and iiii iiii iiii.
Test outside your app by making a Home Screen folder, and then manually rename it to Toronto Hydro. I believe folder labels should render exactly the same as app display name. Any difference?
Topic:
App & System Services
SubTopic:
Core OS
Tags: