I'm using SDCC's inline assembly syntax for my project:
void delay_ms(uint16_t ms) {
_ms = ms;
__asm
ldw y, __ms ; Load ms counter into y register: 2 cycles
0000$:
ldw x, _CYCLES_PER_MS ; Load tick counter into x register: 2 cycles
0001$:
decw x ; Decrease tick counter: 1 cycle
jrne 0001$ ; Check if 1ms passed: 2 cycles (except for x == 0 where it's just 1 cycle)
decw y ; Decrease ms counter: 1 cycle
jrne 0000$ ; Check if provided time has passed: 2 cycles (except for y == 0 where it's just 1 cycle)
__endasm;
}
Unfortunately VScode's language syntax highlighting still interprets the inline assembly code as C code which is quite annoying:
Is it possible to completely disable syntax highlighting for a range of lines in your file?

There is no default setting for that, and as far as I can see, no extension that supports it.
It is possible to treat the entire file as an asm source file. This will still support some very basic C highlighting. To do this, look for asm-collection mode in Select Language Mode menu.
Alternatively, highlighting can be disabled entirely for the file, via the same menu, or, through settings.json in case it needs to be applied to multiple files.