The Skip If Blank field flag (flag number 8) skips the entire line and moves subsequent lines up if all of the fields on the line are blank and if Skip if Blank is ON for all of the fields on the line.
A blank line is also placed after all of the printed lines.
If Skip if Blank is OFF for any of the fields on the line a blank is left in place of the missing fields.
If at least one of the fields is not blank, that field is printed and the line is not skipped.
The Skip If Blank field flag applies to Labels but not to Reports.
See:
Report/Label Editor - Field Flags - All
Report/Label Editor Contents