diff --git a/packages/block-editor/src/components/inner-blocks/README.md b/packages/block-editor/src/components/inner-blocks/README.md
index 0f5d303b8c791..c5ca597311f51 100644
--- a/packages/block-editor/src/components/inner-blocks/README.md
+++ b/packages/block-editor/src/components/inner-blocks/README.md
@@ -194,4 +194,4 @@ For example, a button block, deeply nested in several levels of block `X` that u
 ### `directInsert`
 
 - **Type:** `Boolean`
-- **Default:** - `undefined`. Determines whether the default block should be inserted directly into the InnerBlocks area by the block appender.
+- **Default:** - `undefined`. Determines whether the default block is inserted directly into the InnerBlocks area by the block appender. Direct insertion is automatic if `defaultBlock` is defined or `allowedBlocks` specifies a single block type that has no variations. This setting can be used to override the automated behavior.
diff --git a/packages/block-editor/src/components/inserter/index.js b/packages/block-editor/src/components/inserter/index.js
index 8e2972fbe2bf5..c491751b55ebc 100644
--- a/packages/block-editor/src/components/inserter/index.js
+++ b/packages/block-editor/src/components/inserter/index.js
@@ -195,13 +195,14 @@ class PrivateInserter extends Component {
 		const {
 			position,
 			hasSingleBlockType,
+			directInsert,
 			directInsertBlock,
 			insertOnlyAllowedBlock,
 			__experimentalIsQuick: isQuick,
 			onSelectOrClose,
 		} = this.props;
 
-		if ( hasSingleBlockType || directInsertBlock ) {
+		if ( hasSingleBlockType || ( directInsertBlock && directInsert ) ) {
 			return this.renderToggle( { onToggle: insertOnlyAllowedBlock } );
 		}
 
@@ -225,51 +226,55 @@ class PrivateInserter extends Component {
 }
 
 export const ComposedPrivateInserter = compose( [
-	withSelect(
-		( select, { clientId, rootClientId, shouldDirectInsert = true } ) => {
-			const {
-				getBlockRootClientId,
-				hasInserterItems,
-				getAllowedBlocks,
-				getDirectInsertBlock,
-				getSettings,
-			} = select( blockEditorStore );
-
-			const { getBlockVariations } = select( blocksStore );
-
-			rootClientId =
-				rootClientId || getBlockRootClientId( clientId ) || undefined;
-
-			const allowedBlocks = getAllowedBlocks( rootClientId );
-
-			const directInsertBlock =
-				shouldDirectInsert && getDirectInsertBlock( rootClientId );
-
-			const settings = getSettings();
-
-			const hasSingleBlockType =
-				allowedBlocks?.length === 1 &&
-				getBlockVariations( allowedBlocks[ 0 ].name, 'inserter' )
-					?.length === 0;
-
-			let allowedBlockType = false;
-			if ( hasSingleBlockType ) {
-				allowedBlockType = allowedBlocks[ 0 ];
-			}
-
-			return {
-				hasItems: hasInserterItems( rootClientId ),
-				hasSingleBlockType,
-				blockTitle: allowedBlockType ? allowedBlockType.title : '',
-				allowedBlockType,
-				directInsertBlock,
-				rootClientId,
-				prioritizePatterns:
-					settings.__experimentalPreferPatternsOnRoot &&
-					! rootClientId,
-			};
+	withSelect( ( select, { clientId, rootClientId, shouldDirectInsert } ) => {
+		const {
+			getBlock,
+			getBlockRootClientId,
+			hasInserterItems,
+			getAllowedBlocks,
+			getSettings,
+			getBlockListSettings,
+		} = select( blockEditorStore );
+
+		const { getBlockVariations } = select( blocksStore );
+
+		rootClientId =
+			rootClientId || getBlockRootClientId( clientId ) || undefined;
+
+		const allowedBlocks = getAllowedBlocks( rootClientId );
+
+		const { defaultBlock, directInsert } =
+			getBlockListSettings( rootClientId ) ?? {};
+
+		const resolvedDirectInsert =
+			shouldDirectInsert ?? typeof directInsert === 'function'
+				? directInsert( getBlock( rootClientId ) )
+				: directInsert;
+
+		const settings = getSettings();
+
+		const hasSingleBlockType =
+			allowedBlocks?.length === 1 &&
+			getBlockVariations( allowedBlocks[ 0 ].name, 'inserter' )
+				?.length === 0;
+
+		let allowedBlockType = false;
+		if ( hasSingleBlockType ) {
+			allowedBlockType = allowedBlocks[ 0 ];
 		}
-	),
+
+		return {
+			hasItems: hasInserterItems( rootClientId ),
+			hasSingleBlockType,
+			blockTitle: allowedBlockType ? allowedBlockType.title : '',
+			allowedBlockType,
+			directInsert: resolvedDirectInsert,
+			directInsertBlock: defaultBlock,
+			rootClientId,
+			prioritizePatterns:
+				settings.__experimentalPreferPatternsOnRoot && ! rootClientId,
+		};
+	} ),
 	withDispatch( ( dispatch, ownProps, { select } ) => {
 		return {
 			insertOnlyAllowedBlock() {
diff --git a/packages/block-library/src/buttons/edit.js b/packages/block-library/src/buttons/edit.js
index dce160dfb2fea..a4545067efa59 100644
--- a/packages/block-library/src/buttons/edit.js
+++ b/packages/block-library/src/buttons/edit.js
@@ -12,7 +12,6 @@ import {
 	store as blockEditorStore,
 } from '@wordpress/block-editor';
 import { useSelect } from '@wordpress/data';
-import { store as blocksStore } from '@wordpress/blocks';
 
 /**
  * Internal dependencies
@@ -43,26 +42,16 @@ function ButtonsEdit( { attributes, className } ) {
 			'has-custom-font-size': fontSize || style?.typography?.fontSize,
 		} ),
 	} );
-	const { preferredStyle, hasButtonVariations } = useSelect( ( select ) => {
+	const preferredStyle = useSelect( ( select ) => {
 		const preferredStyleVariations =
 			select( blockEditorStore ).getSettings()
 				.__experimentalPreferredStyleVariations;
-		const buttonVariations = select( blocksStore ).getBlockVariations(
-			buttonBlockName,
-			'inserter'
-		);
-		return {
-			preferredStyle:
-				preferredStyleVariations?.value?.[ buttonBlockName ],
-			hasButtonVariations: buttonVariations.length > 0,
-		};
+		return preferredStyleVariations?.value?.[ buttonBlockName ];
 	}, [] );
 
 	const innerBlocksProps = useInnerBlocksProps( blockProps, {
 		allowedBlocks: ALLOWED_BLOCKS,
 		defaultBlock: DEFAULT_BLOCK,
-		// This check should be handled by the `Inserter` internally to be consistent across all blocks that use it.
-		directInsert: ! hasButtonVariations,
 		template: [
 			[
 				buttonBlockName,