In simpler terms, "not blocking" means that the actors have the freedom to move around the stage as they wish and to decide their own positions and interactions. This approach can be used to create a more naturalistic or improvisational feel to a scene, allowing the actors to explore the space and their characters more freely.
Conversely, when a scene is blocked, the director carefully plans and choreographs the actors' movements and positions, often with specific markings on the stage. This approach provides more control over the visual elements of the scene and ensures that the actors are in the right places at the right times to convey the desired story and emotions.