Let's break down the possible meanings:
* "Encanta esa" (literally "Enchants that") is a phrase that doesn't make sense on its own. It needs a subject to be complete.
* "Me encanta esa" (literally "That enchants me") is the correct phrase. It means "I love that" or "I like that a lot".
So, depending on the context, it can mean:
* "I love that" when referring to a person, object, or idea.
* "I like that a lot" when referring to something that is pleasing or interesting.
Example:
* "Me encanta esa canción" (I love that song)
* "Me encanta esa blusa" (I like that blouse a lot)