Ink/Stitch Lettering Tool
Ink/Stitch comes with a lettering tool, which generates nicely routed embroidery text using Small Embroidery Font by @lexelby.
Ink/Stitch provides digitized embroidery fonts on GitHub.
Creating fonts in embroidery design isn’t the easiest task. But it is a good starting point to learn digitizing essentials.
Most embroidery fonts use satin columns because they look best for this purpose. For very big letters you might consider having a fill stitch attached, surrounded by a satin column border.
Choose a font carefully. It’s quite hard to make satin look good when it’s 1mm wide or narrower. Sans-serif fonts tend to be the easiest. For text smaller than 4mm tall, you’ll have a very difficult time making lowercase letters look good, so consider block-caps. Cursive/script fonts can work well, but it’s not going to be as easy as you think.