Line feeds may appear in the FO document as line feeds or numeric characters ( 
 or ); The following FO blocks are fully equivalent:
<fo:block>Before the linefeed&
The default string processing consists of:
- transforming them into normal spaces;
- collapses them with other neighboring spaces.
This explains why your original input produces output where all parts of the content are placed sequentially on the same line.
Using the linefeed-treatment="preserve" property, both line shapes are saved, and the line : fo: block line building process and each block generates its own lines.
Solution 1:
The easiest way to get the desired result is, perhaps, one of them: one fo:block with saving the line (this is only your original input, after deleting the unnecessary fo:inline and placing it in only one line:
<fo:block linefeed-treatment="preserve">First Line
Second Line, Image: <fo:external-graphic scaling="non-uniform" content-height="scale-to-fit" content-width="4mm" height="4mm" src="data:image;base64,iVBORw0KGgoAAAANSUhEUgAAAGcAAABfCAIAAAB6Ck5uAAAAAXNSR0IArs4c6QAAAARnQU1BAACxjwv8YQUAAAAJcEhZcwAADsMAAA7DAcdvqGQAAAA0SURBVHhe7cGBAAAAAMOg+VNf4QBVAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAHCoAXMKAAFau+l4AAAAAElFTkSuQmCC"/> some more Text on Line 2 3rd Line</fo:block>
Please note that you cannot backtrack from this code because additional output lines will also appear on the output!
Solution 2:
The second solution, which is not related to using the linefeed-treatment property and creates more readable code, would be to use empty blocks instead of forced lines:
<fo:block> First Line<fo:block/>Second Line, Image: <fo:external-graphic scaling="non-uniform" content-height="scale-to-fit" content-width="4mm" height="4mm" src="data:image;base64,iVBORw0KGgoAAAANSUhEUgAAAGcAAABfCAIAAAB6Ck5uAAAAAXNSR0IArs4c6QAAAARnQU1BAACxjwv8YQUAAAAJcEhZcwAADsMAAA7DAcdvqGQAAAA0SURBVHhe7cGBAAAAAMOg+VNf4QBVAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAHCoAXMKAAFau+l4AAAAAElFTkSuQmCC"/> some more Text on Line 2<fo:block/>3rd Line </fo:block> "non-uniform" content-height = "scale-to-fit" content-width = "4mm" height = "4mm" src = "data: image; base64, iVBORw0KGgoAAAANSUhEUgAAAGcAAABfCAIAAAB6Ck5uAAAAAXNSR0IArs4c6QAAAARnQU1BAACxjwv8YQUAAAAJcEhZcwAADsMAAA7DAcdvqGQAAAA0SURBVHhe7cGBAAAAAMOg + VNf4QBVAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAHCoAXMKAAFau + l4AAAAAElFTkSuQmCC <fo:block> First Line<fo:block/>Second Line, Image: <fo:external-graphic scaling="non-uniform" content-height="scale-to-fit" content-width="4mm" height="4mm" src="data:image;base64,iVBORw0KGgoAAAANSUhEUgAAAGcAAABfCAIAAAB6Ck5uAAAAAXNSR0IArs4c6QAAAARnQU1BAACxjwv8YQUAAAAJcEhZcwAADsMAAA7DAcdvqGQAAAA0SURBVHhe7cGBAAAAAMOg+VNf4QBVAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAHCoAXMKAAFau+l4AAAAAElFTkSuQmCC"/> some more Text on Line 2<fo:block/>3rd Line </fo:block>
Since line feeds are not saved, we can use them freely:
<fo:block> First Line <fo:block/> Second Line, Image: <fo:external-graphic scaling="non-uniform" content-height="scale-to-fit" content-width="4mm" height="4mm" src="data:image;base64,iVBORw0KGgoAAAANSUhEUgAAAGcAAABfCAIAAAB6Ck5uAAAAAXNSR0IArs4c6QAAAARnQU1BAACxjwv8YQUAAAAJcEhZcwAADsMAAA7DAcdvqGQAAAA0SURBVHhe7cGBAAAAAMOg+VNf4QBVAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAHCoAXMKAAFau+l4AAAAAElFTkSuQmCC"/> some more Text on Line 2 <fo:block/> 3rd Line </fo:block> "non-uniform" content-height = "scale-to-fit" content-width = "4mm" height = "4mm" src = "data: image; base64, iVBORw0KGgoAAAANSUhEUgAAAGcAAABfCAIAAAB6Ck5uAAAAAXNSR0IArs4c6QAAAARnQU1BAACxjwv8YQUAAAAJcEhZcwAADsMAAA7DAcdvqGQAAAA0SURBVHhe7cGBAAAAAMOg + VNf4QBVAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAHCoAXMKAAFau + l4AAAAAElFTkSuQmCC <fo:block> First Line <fo:block/> Second Line, Image: <fo:external-graphic scaling="non-uniform" content-height="scale-to-fit" content-width="4mm" height="4mm" src="data:image;base64,iVBORw0KGgoAAAANSUhEUgAAAGcAAABfCAIAAAB6Ck5uAAAAAXNSR0IArs4c6QAAAARnQU1BAACxjwv8YQUAAAAJcEhZcwAADsMAAA7DAcdvqGQAAAA0SURBVHhe7cGBAAAAAMOg+VNf4QBVAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAHCoAXMKAAFau+l4AAAAAElFTkSuQmCC"/> some more Text on Line 2 <fo:block/> 3rd Line </fo:block>
Empty blocks divide the contents of the outer block without creating anything in the output.