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This happens because the Visible property only hides the control visually, but Power Apps still keeps the space in the layout. That’s why the section below doesn’t move up and you see empty gaps.
A common workaround is to also control the Height of the card/section when it’s hidden.
Height:
If(varSection1, Parent.Height, 0) //Parent.Height - will use the height of the data card or container. You may need to adjust this depending on your layout
If(varSection1, 80, 0) //or instead of this use form control height
When varSection1 is false, the card height becomes 0, so the fields below will move up and the gap will be removed.
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