The adjustment of letters' and words' positions are merely the finishing touch. More often, it is useful to start out by layouting the text as a whole in a drawing. Inkscape offers two options for this, which are accessible via Text > Put on Path and Text > Flow into Frame.
To make a text follow a path's curvature, you need to do this:
The result will show up on the canvas immediately. The text can still be edited any time: You can change its contents or its style whenever you like. The path will remain editable, too: You can shape its curves, add or delete nodes, move it etc.
Very often, this path only serves to position the text. If you delete it, the text doesn't have anything to follow anymore, and reverts to its previous shape. If you don't want to see the path in your drawing, remove its fill and its stroke!
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