diff --git a/packages/block-editor/src/hooks/use-zoom-out.js b/packages/block-editor/src/hooks/use-zoom-out.js
index 3ec701cfc4a14d..d2a908b4126b06 100644
--- a/packages/block-editor/src/hooks/use-zoom-out.js
+++ b/packages/block-editor/src/hooks/use-zoom-out.js
@@ -1,9 +1,8 @@
 /**
  * WordPress dependencies
  */
-import { useSelect, useDispatch } from '@wordpress/data';
 import { useEffect, useRef } from '@wordpress/element';
-
+import { useSelect, useDispatch } from '@wordpress/data';
 /**
  * Internal dependencies
  */
@@ -19,16 +18,25 @@ export function useZoomOut( zoomOut = true ) {
 	const { __unstableGetEditorMode } = useSelect( blockEditorStore );
 
 	const originalEditingMode = useRef( null );
-	const mode = __unstableGetEditorMode();
 
 	useEffect( () => {
 		// Only set this on mount so we know what to return to when we unmount.
 		if ( ! originalEditingMode.current ) {
-			originalEditingMode.current = mode;
+			originalEditingMode.current = __unstableGetEditorMode();
+		}
+
+		if ( zoomOut && __unstableGetEditorMode() !== 'zoom-out' ) {
+			__unstableSetEditorMode( 'zoom-out' );
+		} else if (
+			! zoomOut &&
+			__unstableGetEditorMode() === 'zoom-out' &&
+			originalEditingMode.current !== __unstableGetEditorMode()
+		) {
+			__unstableSetEditorMode( originalEditingMode.current );
 		}
 
 		return () => {
-			// We need to use  __unstableGetEditorMode() here and not `mode`, as mode may not update on unmount
+			// Restore the original mode on unmount if it was changed to 'zoom-out'
 			if (
 				__unstableGetEditorMode() === 'zoom-out' &&
 				__unstableGetEditorMode() !== originalEditingMode.current
@@ -36,18 +44,5 @@ export function useZoomOut( zoomOut = true ) {
 				__unstableSetEditorMode( originalEditingMode.current );
 			}
 		};
-	}, [] );
-
-	// The effect opens the zoom-out view if we want it open and it's not currently in zoom-out mode.
-	useEffect( () => {
-		if ( zoomOut && mode !== 'zoom-out' ) {
-			__unstableSetEditorMode( 'zoom-out' );
-		} else if (
-			! zoomOut &&
-			__unstableGetEditorMode() === 'zoom-out' &&
-			originalEditingMode.current !== mode
-		) {
-			__unstableSetEditorMode( originalEditingMode.current );
-		}
-	}, [ __unstableSetEditorMode, zoomOut, mode ] );
+	}, [ zoomOut, __unstableGetEditorMode, __unstableSetEditorMode ] );
 }
diff --git a/packages/block-editor/src/store/reducer.js b/packages/block-editor/src/store/reducer.js
index cd4569c45e5801..b937fde36c87cc 100644
--- a/packages/block-editor/src/store/reducer.js
+++ b/packages/block-editor/src/store/reducer.js
@@ -1800,6 +1800,15 @@ export function editorMode( state = 'edit', action ) {
 		return 'edit';
 	}
 
+	// Let inserting a single block always trigger Edit mode.
+	if (
+		action.type === 'INSERT_BLOCKS' &&
+		action.blocks.length === 1 &&
+		action.blocks[ 0 ].innerBlocks.length === 0
+	) {
+		return 'edit';
+	}
+
 	if ( action.type === 'SET_EDITOR_MODE' ) {
 		return action.mode;
 	}