When setting up a site from scratch, users will update the links in their homepage and will often need to add links to pages or posts that do not exist yet. Wrapping one's head around how this works can be a source confusion and, even if you understand how it works, it will break your workflow.
My suggestion would be to let users create a new page or post the moment they are adding the link, here:

This follows the same logic of the feature we have on Homepage Settings and Menus to create a new page "on the fly".


This is already supported in the Link UI, but it's not enabled for inline links. It works in the navigation block, for example.

@shaunandrews noticed that we don't show the "create page" suggestion until the searching is finished, which seems backwards. Do you remember if that was an oversight or intended to function that way?
@mtias I didn't see that option pop-up for a Buttons Block in testing with a user recently. I just tried this on a WordPress.com site, and I don't see the prompt to create a page:

So we don't seem to have a consistent option for this where there are opportunities to add links.
@pauljacobson that's what I meant with "but it's not enabled for inline links". It's only toggled on for the navigation block.
Thank you for clarifying @mtias, I am looking forward to seeing this feature added to inline links :)
I agree, the Button is an excellent use case as well :)

I don't recall why an "new page" options was exposed by default. We definitely explored the design for it. I guess I'd label it as an oversight. I see #26351 was recently created to address the visuals of the Link UI, which has lagged behind the rest of the editor and the G2 updates.
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@pauljacobson that's what I meant with "but it's not enabled for inline links". It's only toggled on for the navigation block.