Select the paragraph and press the Backspace or Delete key. If you delete an entire paragraph (including the paragraph number), subsequent paragraphs will be renumbered, and cross-references will automatically update.
If the paragraph contains a Cross-reference Anchor (shown as a red rectangle) that provides cross-references elsewhere in this document, the Cross-reference Anchor Warning will pop-up to let you know that if you proceed with the deletion, dependent cross-references will show an Error! message. You will need to locate and update the references to the deleted paragraph appropriately.
If you want to delete the text of the paragraph but retain the paragraph number and cross-references, take care not to delete the cross-reference anchors (shown by a red rectangle).
For a video tutorial on how to delete a paragraph, click here.