DocBook allows “block elements” (tables, figures, etc.) inside paragraphs or between paragraphs. The question of whether or not a table, figure, etc. is part of a paragraph is an editorial one. If you put the block element in the DocBook para, it will be in the resulting HTML p element.

Except, that’s not valid HTML. HTML deprives you of the editorial choice. If $unwrap-paragraphs is true, the stylesheets will attempt to unwrap block elements inside paragraphs, producing a sequence of paragraphs and blocks.

Note that with this option, a p element identified with an ID attribute is not guaranteed to contain all of the content that the DocBook paragraph contained.