How do I create a multiline Python string with inline variables?

The common way is the format() function:

>>> s = "This is an {example} with {vars}".format(vars="variables", example="example")
>>> s
'This is an example with variables'

It works fine with a multi-line format string:

>>> s=""'\
... This is a {length} example.
... Here is a {ordinal} line.\
... '''.format(length="multi-line", ordinal="second")
>>> print(s)
This is a multi-line example.
Here is a second line.

You can also pass a dictionary with variables:

>>> d = { 'vars': "variables", 'example': "example" }
>>> s = "This is an {example} with {vars}"
>>> s.format(**d)
'This is an example with variables'

The closest thing to what you asked (in terms of syntax) are template strings. For example:

>>> from string import Template
>>> t = Template("This is an $example with $vars")
>>> t.substitute({ 'example': "example", 'vars': "variables"})
'This is an example with variables'

I should add though that the format() function is more common because it’s readily available and it does not require an import line.