This is called the "Cell insertion menu". Its appearance is defined in MiscExpressions.tr via the front end resource "CellInsertionMenu".
Notebooks (depending on the stylesheet, of course) have it defined as a "cell insertion point cell" by default:
AbsoluteOptions[SelectedNotebook[], "CellInsertionPointCell"] (* -> {CellInsertionPointCell -> FEPrivate`FrontEndResource["FEExpressions", "CellInsertionMenu"]} *) We can disable it as follows:
SetOptions[SelectedNotebook[], "CellInsertionPointCell" -> Cell[]] (* gone *) I guess you can also removeTo kill this option frompop-up at the stylesheet.Stylesheet level one may use Edit Stylesheet and insert:
Cell[StyleData[All, "Working"], CellInsertionPointCell -> None ]