Is holding funds in a Bitcoin paper wallet safe? If you received lots of bitcoins, like 100, and you are not comfortable holding them in your personal blockchain wallet, is it preferable to move them and hold them in a paper wallet for safety reasons?
Yes. A paper wallet is basically nothing more than your private key on a piece of paper.

For usability it is often represented as a QR code though. You can make copies of it, and store several of them in different places, or even store half of the key in one location and another half in another. Bitcoins are never in your wallet, paper or otherwise; they are just entries on the blockchain. Your wallet contains only the private key to allow you to spend your entry on the blockchain.