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It has nothing to do with the caption and picture frames.

The paragraph style for captions in general (which the figure style is inheriting from) adds spacing above and below paragraph. It is, however, misplaced IMHO, as it should be between the paragraph "Figure ..." and the image.

To remove the space above the image either

  • set image position and spacing

    1. Select image, Format → Image (or right click image and select Picture...)

    2. Type tab: Position ... Vertical Top to Margin

    3. (optional:) Wrap tab: Spacing ... Bottom i.e. 0.20 cm (add space between image and caption)


  • change paragraph style Caption or Figure (Format → Styles and Formatting)

If you want to add other captions for i.e. tables later, you might want to go for the first solution. Spacing between caption and table is done correctly (and looks good IMHO).