Microsoft Notepad will not save anything to disk unless you explicitly tell it to do so (by using "Save As"). This is in contrast to more complex programs like Word or Notepad++ that has autorecovery features and might save safety copies of files. I do not know, but suspect, that simple, basic text editors on other OS's work the same way.
If it would be saved to disk, it would persist and possibly be recoverable even after it would supposedly have been deleted. So that would be a bad practice.
Malware could off course read it from the clipboard, or extract it from RAM (where it must be stored sometime anyway, even if you just type it into the password box). But if you have malware on your system all your passwords are lost anyway, so how you type them isn't really an issue.
I would say the major security issue with your scheme is that the password will remain in the clipboard (unless you always remember to copy something else directly afterwards) so that someone who uses the computer after you could stumble upon the password just by pasting.
Also, there are legitimate programs that reads the clipboard and saves it so you can get a clipboard history. Obviously, if you have one of those installed, you are in trouble.
I would recommend that you just use a password manager.