Question: I Have created a bar chart in a 2007 .xls file, but the data labels cannot be resized. When you go to the "format Data Labels" and then click on alignment, the Autofit and Internal Margin option is grayed out. Anyone know why?

Answer: 
**Short version:** It is greyed out for chart text, because it the option doesn’t apply.

**Long version:** 
This is because on a chart, chart text do need to use margins, rather you can you can just move the text., and set its X and Y position. For example take the Chart Title, if you want more space to the left, just click and drag the title to the right. If you want the chart title to be bigger you just set a larger font, you have complete control over the title, as well as all other text on that chart, axis titles, legends, data labels, etc.

Internal margins are meant to be used when you don’t have complete control take for example text in a shape. If you insert a shape in your workbook, and add text to it, you cannot just pick the text up and move it to the right if you want more space on the left, so you can set the margin.
A way around it is to make the chart area big. The data label boxes will resize to fit the words in one line. Then make the chart small (not the chart area).

![enter image description here](https://i.stack.imgur.com/Qigch.png)