There's really not all that much I can reccomend because you already know dreams occur in your own head.
Are you afraid of heights in real life? if so, dreams can be a fantastic time to just mess around with no real harm coming to you, that alone should help it feel more like a "practice run" rather than a place you have to follow your phobias that exist during the day.
If not, then it should't be all that hard to convince yourself that there is nothing to be afraid of.
I've had some similar fear...well, not quite, but it seems that although some of our rational thought is there, we still can't help but be afraid...holding us back.
You may want to try visualizing one of these lucids where you're afraid to fly higher than, like you said, telephone pole height. Just take a few moments during the day (or evening), whenever you get free time, lay down somewhere and see it happen...just for the hell of it, imagine flying high...it must still be thrilling in some way. As much harm that comes to you while laying in bed or wherever, visualizing flying in an LD, is as much that will happen in the dream itself...0 
Oh, another thing that may help you, since it seems you can fly, but are just fearful is imagining a kind of platform beneath you. Imagine your sitting on a platform postioned on a large arm, it can go as high as you like or as low, and you need not feel any fear...
I wish you luck with your goals...and well...courage- You can be an astronaut as well as an oneironaut...
Cheerio
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