Many people(one example) stated that "gas limit" of a block limited "gas limit" of transactions included in it. To verify, I downloaded a block (block number: 10185031) and added "gas limit" of all included transactions and found that the total sum of "gas limit" of all the transactions was much larger than "gas limit" of that block. The results are shown below.
The block's gas limit limits the amount of computation inside the block. It's not directly related to the transactions' gas limits - only to the actual gas usage of the transactions. So if the block gas limit is 10 you can fit in transactions as long as the sum of their actual gas usage is 10 or below.
The block gas limit may be adjusted by the miners. If enough miners want to raise it, it gets raised. So miners, and therefore the network, decide on what the limit should be.
You can read more for example here: https://ethgasstation.info/blog/ethereum-block-size/#:~:text=Instead%20of%20a%20fixed%20limit,limit%20of%20around%2010%2C000%2C000%20gas.