I noticed that when adding a link and having the link modal open that it showed up below the image further down.

Seems to me this happens only when an image is aligned. Doesn't happen on a default image block:


This is still the case:

Seems this has been fixed? Unable to reproduce in Chrome.
I just checked again. Just playing around with aligning and text shows a few different things. (Testing in Chrome in High Sierra in Desktop Server using Gutenberg 2.0)



Here is also a video: https://www.dropbox.com/s/v19rfd2k4181wgc/Gutenberg2-Aligning-images.mp4?dl=0
Btw I was trying to resize the gallery images in the same way I did with individual images. But there are no resize handlebars for images in a gallery.
Hopefully intelligent resizing can be brought into WordPress Core to use instead of multiple size hard cropped images. Having some kind of intelligent way to calculate the size of a thumbnail from a huge image (But this is a totally different discussion.)
I see. Thank you. I wasn't testing with aligned images.
It looks like this is going to require the link modal to be moved into a different 'Slot', because it's currently locked into a stacking context that won't allow this to be fixed in CSS alone.
Fixed in PR: https://github.com/WordPress/gutenberg/pull/4503