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Compact mode is not currently supported. For the recommended and supported experience, we encourage you to keep the normal density setting.

Starting with Firefox version 89, the compact mode density option was removed from the Customize panel but you can still activate it in the Configuration Editor (about:config page).

Warning: These instructions are for experienced Firefox users. Changing settings in the Configuration Editor (about:config) can have serious effects on your browser’s stability, security and performance.
Only proceed if you are comfortable with advanced settings and understand the potential impacts.

Type about:config in the address bar and press EnterReturn.
A warning page may appear. Click Accept the Risk and Continue to go to the about:config page.
Find the browser.compactmode.show preference.
Switch the toggle to true and then close the tab.
Click the menu button to open the menu panel.
Click More tools.
Choose Customize toolbar….
At the bottom of the panel, click Density.
Choose Compact (not supported) from the menu options.
Click Done.