In this example, users perceive the label and the text field as one element. 

University of Michigan - Ann Arbor

The best way to use the proximity principle in interface design is by grouping elements that present similar information, which can organize that information and declutter surfaces. 

Proximity in Interaction Design

"What are Gestalt Principles?" Interaction Design. https://www.interaction-design.org/literature/topics/gestalt-principles

Gestalt Principles of Design

Example 1

In this image, one can see how moving items closer together creates a relationship between them. Therefore, they are easier to read and associate. 

Example 2

In this interface, it is clear which elements are related even though there is no information.

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