Transfer function blocks are mathematical representations used in control theory and systems engineering that describe the relationship between the input and output of a system in the frequency domain. These blocks encapsulate the dynamics of linear time-invariant systems, providing insights into system stability, responsiveness, and behavior under various conditions. They are instrumental when connecting state-space representation to the frequency response of a system, allowing for analysis and design using techniques such as root locus, Bode plots, and Nyquist plots.