When you're on space or taking space in a relationship depending on how you look at things or what you've decided, it can mostly mean one of two things.
1. You're allowing each other more freedom or alone time
The meaning in this sense means that you're you're not hanging around each other as much but are still in your relationship. Maybe you're free to go out with your friends more often, one or both of you isn't as clingy or you've decided to move onto an 'open relationship'.
2. You're having a time out or taking a break.
If you're space is meant in this sense it could mean that you're basically separated for a predetermined period of time. Maybe it's to try and figure out whether or not you should be together or to try and work out issues that one or both of you may have. For more information on 'taking a break' read here.
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