From the Super Mario Wiki, the Mario encyclopedia
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The Copy Block is a block appearing in Mario & Luigi: Paper Jam created by the Paper Toads that allows Paper Mario to create multiple copies of himself. After saving the eight Paper Toads in Peach's Castle, they make the Copy Block and give it to Mario before he and Luigi leave the castle. Afterwards, while battling with the Paper Goombas in Sunbeam Plains, Paper Mario floats down onto the battlefield and Starlow gives him the Copy Block. Every time he gets hit, he does not take any damage, but rather loses one or more copies of himself depending on the strength of the attack. Paper Mario only starts accumulating damage when he is the sole copy. During the Paper Petey Piranha boss fight, he steals the Copy Block from Paper Mario and makes copies of himself.
There is a special Battle Card that enables Paper Mario to create six copies of himself after using it. Additionally, he can increase his max number of copies to a maximum of 10 permanently through rank up bonuses.