The question is, how critical is the quality of audio for you? i.e. is it used for Gaming, movies, casual listening or lossless/high quality audio.
For casual listening, the onboard DAC on the Mini should be good enough and you can use the Line-Out as-is.
Although, I am quite sure that your SoundBlaster might have a better DAC than the onboard Mini DAC, so if you are able to detect a substantial drop in audio quality, then it’s certainly worth the effort to feed digital audio to the SoundBlaster via Optical.
You have a few options to achieve this:
1) HDMI Audio Splitter
2) USB to Toslink
3) Airport Express
For reference, I was using my 2012 Mini’s Optical Audio out, and had it connected to a 2 channel DAC and paired it with a headphone amp to drive my Sennheiser headphones.
The lack of Digital Out on the 2018 Mini led me to explore the different options. I tried a few USB to Toslink converters, and although it was far better than the Onboard DAC of the mini, I could still hear the difference (deterioration) while listening lossless audio on my headphones. This was possibly introduced by the USB to optical conversion. The following product had pretty good output (but not good enough for my liking)
https://hifimediy.com/sabre-dac-uae23
I ended up getting an Airport Express (now discontinued) which still has Optical Toslink Out. I can now play music via AirPlay to the Express, which then connects to my headphone DAC/Amp setup as before. As an added bonus, I can now also stream music from my Phone.
To conclude, I would say audio is highly subjective. Some people can detect finer nuances/differences more easily than others. So try out a few options and finalize on what works best for your taste/budget.
Hope this helps