You select into a scalar variable v_first_name which can, obviously, store only a single value, so selecting multiple rows doesn't make sense in that case. If there might be many records with the same last name, try something like this:
create or replace procedure p_inout
(v_emp_lname in varchar2)
as
begin
for rec in
(
select first_name
from employees
where last_name=v_emp_lname
)
loop
dbms_output.put_line(rec.first_name);
end loop;
end p_inout;
/