Try changing the parameters that Android Studio brings to this screen, you can remove the Padding from the icon, this Padding is an internal space that is generated between the icon and the edge of the image, generating a transparent space, making your icon is smaller.
You can also check the Trim option that removes the empty spaces around the icon image.
Another way will be to use a custom icon, there are some utilities on the internet that generate these icons according to a selected image, I use Icon Slayer very much that can be accessed by the link: link