What exactly is this?
when I see this blue gap with pixel size number in it - is this because I have reduced the block size (padding) or what exactly is it? thanks

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Hello Resemary,
that is called a padding in CSS terms. It is used to add or remove spacing between blocks. You can drag the handle down or up to modify the padding value.
Like in the GIF below:
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Or change it in the block settings if you want it to be zero.
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