I noticed that the handheld light is colored, is the block in the world okay?

Worldspace colored lights aren't possible at the moment due to the way Canvas's lighting system works. This is planned to be possible in the future. The reason handheld lights are colored is because it is easy to get information about what items are being held.

thanks

If you are interested, Forget-Me-Not has colored block lights with global illumination, though it is rather expensive. It's also very pretty regardless, might be worth a try :)