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It doesn't look to me like there's any menu option which enables whitespace to be viewed in the text editor.
There's a similar question here, however this is referring to SSMS Express 2005 . An answer to this question shows how whitespace viewing can be enabled by editing registry values. However, i don't have that path specified in my registry. (I've checked each dir in the SQL Server registry and can't find a 'Visible Whitespace' entry)
I am using SQL Server Management Studio 2016 (v 13.0.15500.91)
Surely there must be a way to achieve this. It's not really required but I would like my settings to match my other versions of SSMS.
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The SSMS Add-in allows you to set your own hotkey (default is Ctrl - K , Ctrl - F , to match Visual Studio), and formats the entire script or just the code you have selected/highlighted, if any. Output formatting is customizable.
Whitespace is optional in pretty much any language where it is not absolutely necessary to preserve boundaries between keywords and/or identifiers. You could write code in C# that looked similar to your SQL, and as long as the compiler can still parse the identifiers and keywords, it doesn't care.
The option is under: Edit > Advanced > View White Space
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You can also add this to a toolbar:
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