In Notes 8.5 the Sidebar will be easier to manipulate. Specifically, it will be easier to:
Drag a panel up or down. However, that still left us with the issue that each panel had a title bar that took up space, as shown in the following picture.
So we added the ability to drag a panel down to become an icon at the bottom, or drag it up to be an icon at the top.
In the public beta , you can drag icons DOWN so that the become an "icon bar" at the bottom. As of today's build, you can also drag them up, as shown in the screenshot below: