To apply Block Quote or Verse styling:
Highlight the text you want to format.
Click the Block Quote or Verse option in the toolbar.
If you're writing in Atticus:
Click the Block Quote or Verse option in the toolbar, then add your text.
Keep in mind that Block Quote and Verse are paragraph styles, so padding will automatically be added above and below each paragraph (whenever Enter is used).
If you need to reduce the space between lines while using Block Quote or Verse, I recommend using soft returns (Shift + Enter). Press Shift + Enter once to have the next line start directly below the first paragraph, or press Shift + Enter twice if you'd like to leave one blank line between them.