Dear list, LyX-code is pretty leanient about blank lines compared to the other environments.
But still yo can't go around adding more than one blank line without a guarded-return. Yes you can =) Enter a line of text as lyx-code with a blank line and another line. Add a guarded return to the end of the first line. Now position the cursor on the first blank line. Hit return. Hit up. Hit return. Hit up. etc. etc. Blank lines for all!! Now try and delete those lines... you won't have much luck =) Have fun, Darren