How to reduce embedded note height/length so that it's only a preview of 1-2 paragraphs?

In order to link to multiple paragraphs with one block link, there has to be no free space between these paragraphs. I just tested it and this is what you could do:

This is the first Paragraph. It is very short.
%%One Block Link for Multiple Paragraphs%%
This is the second Paragraph. I really don’t know what to write here. ^thisisaparagraph

The %%text%% ensures that the block link function views this as one Paragraph to link to because there is no space between the two. (You can put any text between the %%. That Symbol hides the text inbetween in “Reading View”.)

If you want you could manually put the block link behind the last paragraph you want to link, like i did with ^thisisaparagraph. If you then want to link to these Paragraphs you can simply type ![[YourFileName^thisisaparagraph]]. You’ve given the block link a name that you can remember instead of the randomly generated one.

Hope this helps.