The tool output windows are created to be large enough to display the information they contain, subject to the size of your screen. For simple text windows and tabular output, you can use the scroll bars to see more information in the windows, and resizing will change the fraction of the contents currently visible. For graphics windows, resizing will rescale the contents, changing the relative proportions of the contents and, in some cases, the size of fonts.
You can resize a tool output window just like any other window. Just drag any edge or corner of the window. The tool output windows also have a maximize button that will make them fill the entire Workbench as described above.