assign width and height config explicitly and if it is not enough use maxWidth and maxHeight configs
check out :
http://jsfiddle.net/acteon/p46v3/
{
xtype: 'displayfield',
value: 'line 1 aasdasdasdasdasdasd line 2 ad asd asd asd asd asdasd',
fieldLabel: 'multiLineField',
width : '20%'
}