Two places and both are shown in the image attached with highlights.
First. In Endnote, check the Bibliography layout settings for your chosen style. I show APA 6th which is a hanging indent, no spaces (no paragraph symbol in the before or after boxes on the left of image). If you view a selected reference in you library with the “preview” tab, it should show the indented output, as an example after you save any changes, as shown in the left image above the APA settings window.
If you make changes, and it is a “default” supplied style, you will want to make these changes, and save as to a new name. then find and use that newly named style in your word document.
These settings usually override the setting you might try to make in the (second place described by Tony M previously) Bibliography layout settings shown from the endnote tab in Word, Bibliography layout settings on the layout tab. here the settings should reflect the hanging (first line 0, hanging .5 in) indents from the output style and be single, no space after. A second image with the Endnote ribbon expanded is also shown for more clarity on how I got to that menu.
