This is either Mechanical Doubling or Die Deterioration. These letters aren't raised on a coin unlike the letters on the front of the coin. If this was a doubled die the letters would actually have been smaller, however, no doubled dies like this have been found on quarters.
I was saying there were no doubled dies where the letters are smaller have been found. Because the word Colorado is not raised on the coin, but incuse, a doubled die would make the letters smaller. On your coin, the letters are larger meaning this is either Machine Doubling or Die Deterioration.
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