In the default resolution some of tabs are so small, that you cannot make out the different options, and that is obviously a major issue. To fix this I resized my material editor using the MaterialEditor.cfg, located in documents/HPL3. I have tried scaling in the resolutions: 1280x720 and 1600x900.
Problem is this only scales the window, and not the buttons themselves.
Regardless of if this is an issue for the material editor in general(meaning even devs have this issue), or this is just something experienced on the modding side, this definitely needs a fix, as is highlighted by my inability to differentiate 3 physics materials in the picture above.
A temporary workaround for now is to open the .mat files with notepad++/codelite/other, and edit in the name of desired physics material or other manually.