The easiest way is to build a new list of the values with the spaces removed. For this, you can use list comprehensions and the idiom proposed by @CodeWithYash
old_list = ['ENTRY', ' 102725023 CDS T01001']
new_list = [" ".join(string.split()) for s in old_list]
Note that this works because the default behavior of split is:
split according to any whitespace, and discard empty strings from the result.
If you would want to remove anything but whitespace, you would have to implement you own function, maybe using regular expression.
Note also that in Python strings are immutable: you can not edit each item of the list in place. If you do not want to create a new list (for example, if a reference to the list is kept in other place of the program), you can change every item:
l = ['ENTRY', ' 102725023 CDS T01001']
for i, s in enumerate(l):
old_list[i] = " ".join(s.split())
print(l)
Output:
['ENTRY', '102725023 CDS T01001']