Field definitions - issue with line spacing

I'm creating/modifying email templates but notice that when I insert a custom field definition and then preview it, the inserted field appears on a line by itself, even if it is in the middle of sentence. What am I doing wrong? (If you can, preview my template called "NBH Initial Template" to see what I'm talking about.) Thanks!

Looks like you have your field definitions set to "Rich Text". That allows you to do a multiline editor on the field, but then the result is not going to merge in smoothly.

Looks like the fields values themselves that you're using are all just plain text. Can you uncheck the Rich Text box and then review the field values? With Rich Text off, it'll be a text only merge that should work inline.