Ability to edit blocks in a pop-up modal

Continuing the discussion from Option to remove/disable "From Library" button on the Link field type (Expanded View):

For a better editor experience, we would like the ability to pop up a modal editor for a single block (similar to how the modal record editor works for Link fields). This would allow better isolation of a chunk of content and provide a clearer separation of concerns while editing complex schemas of nested blocks. It would be especially helpful for Modular Content Fields.

Example:

Thanks,
Nathan

(Moderator note: I split this request from a related but separate topic (Option to remove/disable "From Library" button on the Link field type (Expanded View)) to clarify the feature request. Some of the text was paraphrased from the original discussion.)