[guided]The trace and norm of $\alpha$ over $L/K$ are defined as the trace and determinant of the $K$-linear multiplication map
\begin{align*}
m_\alpha: L &\to L \\
x &\mapsto \alpha x.
\end{align*}
To compute $\operatorname{Tr}(m_\alpha)$ and $\det(m_\alpha)$, we need to represent $m_\alpha$ as a matrix with respect to some $K$-basis of $L$. The choice of basis matters for the matrix entries but not for the trace and determinant (which are basis-independent). A good choice is one that reveals the structure of $m_\alpha$.
The key observation is that $m_\alpha$ commutes with scalar multiplication by elements of $K(\alpha)$: for $c \in K(\alpha)$ and $x \in L$, $m_\alpha(cx) = \alpha(cx) = c(\alpha x) = c \cdot m_\alpha(x)$. This means $m_\alpha$ is not merely $K$-linear but $K(\alpha)$-linear. Consequently, if we choose a basis that respects the $K(\alpha)$-module structure of $L$, the matrix of $m_\alpha$ will decompose into blocks.
Set $d := \deg P_\alpha = [K(\alpha) : K]$ and $r := [L : K(\alpha)]$. The set $\{1, \alpha, \ldots, \alpha^{d-1}\}$ is a $K$-basis of $K(\alpha)$ because $P_\alpha$ is the minimal polynomial of $\alpha$ over $K$: it is the monic polynomial of least degree in $K[t]$ satisfied by $\alpha$, so $\{1, \alpha, \ldots, \alpha^{d-1}\}$ are linearly independent over $K$, and every higher power $\alpha^k$ ($k \ge d$) can be reduced using the relation $\alpha^d = -a_{d-1}\alpha^{d-1} - \cdots - a_0$.
Fix a $K(\alpha)$-basis $\{w_1, \ldots, w_r\}$ of $L$. By the Tower Law, $[L : K] = rd$. The products $\{w_j \alpha^i : 0 \le i \le d-1, \, 1 \le j \le r\}$ form a $K$-basis $\mathcal{B}$ of $L$ with $rd$ elements. We order this basis by grouping all powers of $\alpha$ with the same $w_j$ together:
\begin{align*}
\mathcal{B} = \{w_1, w_1 \alpha, \ldots, w_1 \alpha^{d-1}, \; w_2, w_2 \alpha, \ldots, w_2 \alpha^{d-1}, \; \ldots, \; w_r, w_r \alpha, \ldots, w_r \alpha^{d-1}\}.
\end{align*}
This ordering will produce the block-diagonal structure we seek.[/guided]