Basically what Counterpoint says:

counterpoint on 08/03/2015, 09:55 PM - view
It's just how the UI works, and it is annoying. There's a sort of "distance mode" and a "close-up mode", and the transition between the two isn't seamless. So as you're approaching a target, you will often see the "distance" label, then it'll disappear, and re-appear as the "close-up" label once you're closer. There's no known fix -- even reinstalling, or drivers, or UI reset, or whatever. Everyone I've seen streaming TERA has the same issue. As far as I can tell, it's the game coding.

Bluehole has continued to work in optimizations to help players that experience lag due to other nearby objects/players. One method is to limit the amount of things loaded at one time. So the game is doing what Counterpoint refers to; when you get close to an object, the game decides if it should be loaded or not. This should be seamless and as mentioned, for some it is. But not for all.

I will grab the video submitted by Tsukasakun and send to Bluehole.