Let's back up a bit before answering the questions. OneNote automatically
converts Ink to text in the background and instantly makes it searchable.
It even stores several reasonable conversions if your handwriting isn't
clear for a given word. So you never have to explicitly convert your
handwriting to text in order to use that data elsewhere. You can keep all
of your OneNote notes in their original handwritten format forever.
1) Any line breaks in the handwritten Ink will be retained when converted
to text.
2) Once the Ink is copied to the clipboard, it can be pasted into any
application that accepts either text or Ink. If the application has a
Paste Special option, it is more likely that it will accept either Ink or
text. If you do manually convert the Ink to Text in OneNote for whatever
reason, the converted text remains as text and can be pasted anywhere, even
on the same page in OneNote.