and when you mouse over it, you will see a large yellow block behind the link. In fact, this box will extend the entire width of whatever container element the link is found inside. Look at the way that the left navigation on your example page works – the block-level color is contained by the width set for the navbar.
The example above would do this to the entire page, so to add this style to all the links in a particular element, you could click once on that element in Freeway, then open up the Style / Links segment of the Inspector, then click the More… button and use the extended style editor to add the display:block attribute and the padding. Once you have done that, the style that gets written to the page will have a prefix that “scopes” it to just the links found inside that box: