The size of the letters in STAM is determined by the spacing between the scored horizontal lines of sirtut: The regular-sized letters (e.g. alef or beis) should be roughly half the height of the space between the sirtut. This is to ensure that there is enough room for the ascenders and descenders of the tall letters (e.g. lamed or kuf) to be written properly without touching the letters on the lines above or below. If the lines of text are spaced too far apart (double-spaced or more), it might be considered a parsha break, which would also invalidate the STAM item.
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STAM 101 introduction & index