diff --git a/packages/block-library/src/navigation/editor.scss b/packages/block-library/src/navigation/editor.scss
index 60d65922fcbcd..00fac191dcc94 100644
--- a/packages/block-library/src/navigation/editor.scss
+++ b/packages/block-library/src/navigation/editor.scss
@@ -20,6 +20,15 @@
 	}
 }
 
+// The following rule affects the positioning of the dropdown arrow indicator.
+// On the frontend, this element is inline, which makes it look correct. In the editor,
+// the label is block, which causes the dropdown indicator to wrap onto a new line.
+// Therefore we explicitly set it to inline even in the block editor.
+.wp-block-navigation-item__label {
+	display: inline;
+}
+
+
 /**
  * Submenus.
  */