Should I continue with my meditation when a trauma and a blockage comes up to the surface during my meditation? Should I just observe it an go on with my meditation? Or should I take that opportunity and use my power to heal it?

Go on with your meditation. Genuine meditation will result in the arising of the state of awareness. Remaining in awareness, in full acceptance with whatever comes up, letting it arise and then return to silence while maintaining focus on the object of the meditation is enough.

When you think that you should heal the trauma, that there is something wrong with it, and try to heal it, then you start approaching it from the ego state. The purpose of meditation is to let go of this illusory self. While this is happening, awareness is getting uncovered. As you stay as the awareness with unconditional love with whatever is arising, even trauma, it will be resolved, returning to stillness and your understanding evolving naturally. This will happen in its own natural time. If you try to force it, then you are preventing it, you are treating it as unacceptable as it is and your awareness in this case is not able to merge with it.

Meditation is to uncover naturally our deepest aspects of Awareness, Divine Love and Higher Intelligence which always exist as us. Trauma is a temporary arising within the Awareness. It is just an experience. We can see it just as it is, arising from within ourselves and returning to silence again, thus integrating it into our understanding. We don’t need to fight with it to see it as it is and to let it go. This is what your meditation practice is teaching you/naturally evolving your understanding.

To further examine the understanding of meditation in this answer, I suggest you read this article.

This conversation will also help understand the approach in this answer (actually it truly goes to the depth of the question): What to do when deep emotions and memories from trauma surface?