A block quote is a quote of 40 or more words (see page 171 of the manual). The sentence before the block quote must end with a colon:
9. This quotation has two paragraphs, so the formatting is not yet complete. Highlight the last sentence and change the left indentation to 1, as show in this example.
10. The block quotation is now complete.
11. A picture of how the block quotation looks in my paper, appears below.