I too leave it whole and cut as needed.

I do not cut my yardage down, unless I have more than 5 yards, then I cut off a strip a bit wider than what I need. I keep all most big pieces at around 5 yards.

To make it easier to manage, I would wind it on an empty bolt, or accordion fold it. I agree you should cut as you need. Never know when you need a large piece...

I don't cut my fabrics down to store them but when I'm ready to cut for a quilt I'll cut off shorter amounts. A pattern will generally call for several strips of the same width so I cut that amount plus an inch or so off my yardage and starch and iron before I cut.

I do not cut mine down either, I cut as I go.

I would keep the piece as large as possible. Since your block will not be larger then 9". I would cut a strip slightly larger then 9.5". Play around with that strip until you figure what size you really need for your quilt. Then go back and cut off only what you need.

I never cut yardage and I don't cut down scraps either, because just never know what size I will need for flower center or a little doggie leg.

For 7-10 yards of fabric, I store it as is until I need it for a quilt. At that time, assuming I need to cut pieces for a quilt top, I will cut off 1 yard and work with that smaller piece. If I know I will need only 1/2 yard, I will cut off that much. If I am going to use the fabric for a border and want to cut the borders on the lengthwise grain, I will cut off as much as is needed for the longest border and work with that piece.

I find it too difficult to cut strips and pieces from 7 yds of fabric. Maybe if I had a much bigger table that could support all that bulk.........

Edit: Oh, and I should add that I pin a note to the fabric that tells me how many yards are in it. If I cut off a yard to use in a quilt, I update the note pinned to the remaining yardage. This saves me from having to wrestle with the yardage to figure out how much of it I have.

I don't cut down larger pieces of fabric - I want the maximum available for future projects. The only time I cut down fabrics is when I've got smaller than a FQ, then its Bonnie Hunters method, down to 10", 5", 3.5, 2.5, 2.0, 1.5 strips. Those are wonderful when I want a quick quilt, as I just go to each size stash and sew from that -- plus I love scrappy quilts, which is what I end up with. Even the uglies go into these piles -- as Bonnie Hunter says, if the fabric you're using is still ugly, you haven't cut (or sewn) it small enough yet! I often turn those around, too, as usually the back side of the 'ugly' fabric is useable 'as is'.

Don't cut it until you need some. Though if I have a huge piece, 10-15 yds, I will sometime cut a 1 yard piece to put in my cabinets and then put the large piece in the garage in my fabric storage tubs, that way I know I have some of a fabric if I am pulling for a quilt.