Based on your screen shot, I fear that you may not understand how paragraph and character styles work. You should NEVER create a character style with an entire paragraph highlighted. That would be the job of the paragraph style. For what you are trying to do, you would want to do create a paragraph style for that paragraph of text. That paragraph style will record the:
- font
- size
- leading
- alignment
- drop cap setting
The character style in your case would only come into play if you wanted the drop-cap character to be in a different font, face, color, etc. Then within the paragraph style, you could choose that character style to adjust the formatting of the cap. By doing this, you would be able to simply click inside of the paragraph (not necessarily selecting any text), and then apply the paragraph style to produce the formatting that you're trying to achieve.
Another thing to remember is that character styles always win! Whenever you apply a paragraph style to text and then apply a character style to some of the text within that paragraph, the character style formatting will take precedence (win).
I hope that helps.
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