diff -u b/core/modules/layout_builder/src/Controller/ChooseBlockController.php b/core/modules/layout_builder/src/Controller/ChooseBlockController.php
--- b/core/modules/layout_builder/src/Controller/ChooseBlockController.php
+++ b/core/modules/layout_builder/src/Controller/ChooseBlockController.php
@@ -101,7 +101,9 @@
         $build['add_block'] = [
           '#type' => 'link',
           '#url' => $url,
-          '#title' => $this->t('Create new content'),
+          '#title' => $this->t('Create @entity_type', [
+            '@entity_type' => $this->entityTypeManager->getDefinition('block_content')->getSingularLabel(),
+          ]),
           '#attributes' => $this->getAjaxAttributes(),
         ];
         $build['add_block']['#attributes']['class'][] = 'inline-block-create-button';
diff -u b/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockPrivateFilesTest.php b/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockPrivateFilesTest.php
--- b/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockPrivateFilesTest.php
+++ b/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockPrivateFilesTest.php
@@ -192,8 +192,8 @@
     $page = $this->getSession()->getPage();
     $page->clickLink('Add Block');
     $assert_session->assertWaitOnAjaxRequest();
-    $this->assertNotEmpty($assert_session->waitForLink('Create new content'));
-    $this->clickLink('Create new content');
+    $this->assertNotEmpty($assert_session->waitForLink('Create custom block'));
+    $this->clickLink('Create custom block');
     $assert_session->assertWaitOnAjaxRequest();
     $assert_session->fieldValueEquals('Title', '');
     $page->findField('Title')->setValue($title);
diff -u b/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockTest.php b/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockTest.php
--- b/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockTest.php
+++ b/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockTest.php
@@ -462,7 +462,7 @@
     $page->clickLink('Add Block');
     $assert_session->assertWaitOnAjaxRequest();
     // Confirm that with no block content types the link does not appear.
-    $assert_session->linkNotExists('Create new content');
+    $assert_session->linkNotExists('Create custom block');
 
     $this->createBlockContentType('basic', 'Basic block');
 
@@ -470,10 +470,10 @@
     // Add a basic block with the body field set.
     $page->clickLink('Add Block');
     $assert_session->assertWaitOnAjaxRequest();
-    // Confirm with only 1 type the "Create new content" link goes directly to block
-    // add form.
+    // Confirm with only 1 type the "Create custom block" link goes directly t
+    // block add form.
     $assert_session->linkNotExists('Basic block');
-    $this->clickLink('Create new content');
+    $this->clickLink('Create custom block');
     $assert_session->assertWaitOnAjaxRequest();
     $assert_session->fieldExists('Title');
 
@@ -482,11 +482,12 @@
     $this->drupalGet($layout_default_path);
     // Add a basic block with the body field set.
     $page->clickLink('Add Block');
-    // Confirm more than 1 type exists "Create new content" shows a list block types.
+    // Confirm that, when more than 1 type exists, "Create custom block" shows a
+    // list of block types.
     $assert_session->assertWaitOnAjaxRequest();
     $assert_session->linkNotExists('Basic block');
     $assert_session->linkNotExists('Advanced block');
-    $this->clickLink('Create new content');
+    $this->clickLink('Create custom block');
     $assert_session->assertWaitOnAjaxRequest();
     $assert_session->fieldNotExists('Title');
     $assert_session->linkExists('Basic block');
diff -u b/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockTestBase.php b/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockTestBase.php
--- b/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockTestBase.php
+++ b/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockTestBase.php
@@ -140,8 +140,8 @@
     $page = $this->getSession()->getPage();
     $page->clickLink('Add Block');
     $assert_session->assertWaitOnAjaxRequest();
-    $this->assertNotEmpty($assert_session->waitForLink('Create new content'));
-    $this->clickLink('Create new content');
+    $this->assertNotEmpty($assert_session->waitForLink('Create custom block'));
+    $this->clickLink('Create custom block');
     $assert_session->assertWaitOnAjaxRequest();
     $textarea = $assert_session->waitForElement('css', '[name="settings[block_form][body][0][value]"]');
     $this->assertNotEmpty($textarea);