Describe the bug
When a cover image wraps onto many lines (or contains many line breaks), the inline edit toolbar gets obscured by the block toolbar:

To Reproduce
Tested with:
Gutenberg 3.8
Originally reported by @bph
What's the solution, a higher z-index for the inline toolbar?
Almost! But it'll actually need to be just a little more complicated:聽right now, there's no way to dismiss the inline toolbar, which means that if it were above the block toolbar, users would never get a chance to click on the block toolbar items that'd be obscured. 馃槥 Users _can_ remove the blinking cursor from the cover image by clicking outside the text area, but it doesn't hide the controls.
So a complete solution would need to:
Also hide the block toolbar when someone clicks out of the editing field.
I thought it was already the case, must be a regression :)
As a side effect of merging nesting in cover block this issue got solved.
Most helpful comment
As a side effect of merging nesting in cover block this issue got solved.