Custom Block question

I'm trying to create a new page and add blocks to it but having a few issues. 

So mainly i'm trying to add a recent picture gallery to the top of a page which there is a custom block already created or I should say it was already in the list of custom 

blocks ( I never created it)  So the issue is even though I select that it still says (see attachment) 

I have no Idea where to go from here as there is not many option to select and I checked all the permissions that I know off and I can't see anything else to change there

I'm no pro at this so Any help would be awesome!  

Cheers,