Does caffeine affect mental health?

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I've been told not to drink so much coffee. I drink about 4-6 cups a day. I love it. I find it gives me energy. I don't have a lot of energy usually. Also it's nice to relax with a cup of coffee. However if I drink too much I can feel very agitated. Sometimes it makes me sleepy afterwards. Also sometimes it can cause me anxiety and lightheadedness. It has caused paranoia before because of the lightheadedness in that ill think I've accidentally ingested drugs. I get that a lot though. I start to think I've accidentally taken pills crushed into it.

It can cause me to feel nauseous sometimes but only if I drink it on an empty stomach. I like the taste though. I drink it black or with cream and sugar. I'm just not sure if it can have negative effects on my mental health over a long period of time.

Yes, especially if you're consuming large quantities of it regularly.

There's both possible risks related to it being addictive and dealing with withdrawals, as well as just the impacts of caffeine intoxication. Stimulants in general tend to make anxiety worse, make the user more prone to feeling agitated, more prone to impulsive behaviours, can cause euphoria etc.

Also, if you're consuming significant doses of caffeine, you are on drugs even if most of society prefers to not acknowledge it as such. For some reason people tend to downplay the more socially acceptable drugs (caffeine, nicotine, alcohol, pot) as not really being drugs despite them undeniably having obvious psychoactive effects.