Format paragraphs
For point type, each line is a separate paragraph. For paragraph type, each paragraph can have multiple lines, depending on the dimensions of the bounding box.
You can select paragraphs and then use the Paragraph palette to set formatting options for a single paragraph, multiple paragraphs, or all paragraphs in a type layer.
Select the Horizontal Type tool 
or
the Vertical Type tool 
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To apply formatting to a single paragraph, click in a paragraph.
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To apply formatting to multiple paragraphs, make a selection within a range of paragraphs.
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To apply formatting to all paragraphs in the layer, select the type layer in the Layers palette.