Open the note properties. (To do that, right click on note and select properties or double click the note). On the text style tab, check the “Break crosshatching” in. This will break the hatch. The margin input refers to the empty space around the text.
You need to update the sheet activate this setting. To do that, go to View → Update → Sheets from main menu in wildfire versions or right click and press Update sheets in empty area.
In Creo Update sheets button is located under Review tab.
This is the property of the note and not hatch. So if you move the note to other hatch area it possesses the same function. This works in all hatches like cross section and draft entity hatching.
That's all for this topic. I hope this helped you.