The next options are under the Format heading.
Normally selecting word wrap is the best thing. What this does is
when enabled, when typing in Notepad comes to the right side of the
page, the words will wrap and start on the next line without having
to hit the Enter key.
Note this does not affect printing. If there is a several line paragraph in which Enter was never hit then the paragraph will take up the entire width of the printed paper's margins.
To turn word wrap ON click on Format then Word Wrap. A checkmark will appear next to Word Wrap.
Click here for a screenshot showing Word Wrap is on.
To turn word wrap OFF click on Format then Word Wrap. The checkmark next to word wrap will disappear, indicating word wrap is off.