I was looking for something similar and found an asset in the godot asset library called Font Auto Size Labels. (https://godotengine.org/asset-library/asset/2866) It only worked well at design time and not runtime so I abandoned the idea and stuck with regular labels and using elipses. But I bet if you examine how the asset works, you might be able to get it function at runtime or learn how it works and roll your own. Good luck!
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Create a new scene for the country. Arrange the nodes so the area2d is the main node, and the label is a child of that node. Make sure that the label inherits traits from its parent node.
When you resize or move the Area2d it should now resize the label along with it.
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