Direct cursor lets you enter text, images, tables, frames, and other objects in any blank area in your document. OOo inserts blank paragraphs and tabs to position the text or objects.
This feature is incompatible with rigorous use of styles and can lead to many formatting oddities, so it should be avoided by professional writers.
The AutoCorrect tool automatically removes empty paragraphs, tabs, and spaces that are inserted by the direct cursor. If you want to use the direct cursor, then disable the AutoCorrect tool.