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While working with text in XR there are some essential things to keep in mind when it comes to how we perceive the text. The factors mentioned below play a crucial role in how we select and do typesetting of text in XR experiences. 
Visual Acuity: commonly describes the clearness of vision. Visual acuity is dependent on optical and neural factors:
The sharpness of the retinal focus within the eye, 
The health and functioning of the retina, and 
The sensitivity of the interpretative professors of the brain.
Spatial Frequency: refers to the level of details present in an image (stimulus) per degree of visual angle. A letter with small details and sharp edges contains higher spatial frequency as compared to a simplified letter with round edges.
Crowding: is the effect of separation which hinders the reading, it is a perceptual phenomenon in which recognition of letters presented away from the fovea (centre of gaze) is impaired by the presence of neighbouring letters
Foveal and parafoveal reading: Human eyes do not move continuously along a line of text while reading; instead, they jump across the line in rapid movements (known as saccades), between these saccades the eyes stop for a fraction of seconds (fixations). During this process, the Foveal area is where the fixation happens and the user focuses on that area however the parafoveal region helps in continuous reading
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All these factors above are discussed in detail in the following section. In case you want to read it in an article format then visit this link on my website.​
Basic Concepts - Previous
2D vs 3D Text
Visual Acuity
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