I have seen this method of quoting a source. It is often used in books and research essays, but I am unaware what it called, or if it is legal in the MLA or APA writing format. I have some screenshots to demonstrate it. The first uses text from The Wheel of Fire: Interpretations of Shakespearian Tragedy by George Wilson Knight:

This image shows a three line quotation that lacks quotation marks and is off-set from the paragraphs above and below, with the attribution (v.i. 291) to the lower right of it.

The second quotes material from from Ophelia's End—A document in Madness from The Riddles of Hamlet by Simon Augistine Blackmore. Boston, Stratford & Co.

An excerpt that shows an 11 line, indented quotation set-off from paragraphs above and below it.

I have also seen the quotation bolded and indented.

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    Hi Drew, and welcome to the website. We have a few policies you might want to keep in mind for future reference, to prevent questions from being closed before they can be answered. The first is that we generally prefer demonstrated research to prove that a question is not too simple to answer (I supposed it wasn't, which is why I answered). The second is that single-word-requests require a fill-in-the-blank style exemplary sentence, so we can choose the best word for your context. Finally, we also require third-party material to be attributed to its source. – Tonepoet Apr 30 '17 at 3:56

Section 11.11 of The Chicago Manual of Style 15th edition describes two styles of indicating quotations. One is the run-in quotations that are integrated into the text, and the other is quotations that are set off as block quotations, or extracts. Block Quotations are permitted in A.P.A., M.L.A. and presumably most other styles too, although the exact rules regarding how short they can be varies by style. H.T.M.L. even has a blockquote tag that you can use to indicate quotations that are set off like this, which I'll show here:

A block quotation (also known as a long quotation or extract) is a quotation in a written document that is set off from the main text as a paragraph, or block of text, and typically distinguished visually using indentation and a different typeface or smaller size font. This is in contrast to setting it off with quotation marks in a run-in quote. Block quotations are used for long quotations. The Chicago Manual of Style recommends using a block quotation when extracted text is 100 words or more, or approximately six to eight lines in a typical manuscript.

This excerpt is from the Wikipedia's Block Quotation entry, which is licensed under the terms of the CC-BY-SA 3.0 license.

You can click on the edit link below this answer to view the H.T.M.L. for it.

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A block quote is a long quote that is indented and set apart from the text. On occasion, it is a short quote that is set out for special emphasis or clarity. In many literary publications, use of the indent and spacing before and after the block quote is sufficient.

In some fields, notably, law, material is put both in block quotes and between quotation marks. The Blue Book, a guide used for citations in briefs, recommends block quoting any quote of more than 50 words.

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