A block interaction is the default mode of an interaction. The other modes of an interaction are inline and extended inline mode.
It is called block interaction as the interaction is inserted as a content block in the hierarchy of the question. Based on the layout and settings of each interaction, this means that the interaction tries to use the full width available. In the block interaction mode, all features of the interaction are available.
A basic example for an Algebra or Math Entry block interaction:
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