Children generally learn to play with blocks in a sequence.
Check out this PDF from the Montana State Library about the stages of block play.
This YouTube video talks about all of the different things that kids learn through block play and presents the idea of doing a block party.
At 17 months, this little girl is stacking and making block towers.
This video highlights all the things that this young child is learning when playing with blocks.
I also loved this quote on block play: "Unlike toys that have limited use or can be play with in only one way, open-ended toys and play-things can be used in diverse ways and with different levels of proficiency. Blocks, for example, can be used to stack, load in a wagon, build a tower, clap to music, or symbolically represent a person, vehicle, animal, or railroad track. Blocks are enjoyed differently at different ages as play behaviors and capabilities change over time. Blocks have an enduring quality essential to play that supports cognitive and language development at all ages. Think about it: Architects and engineers use blocks to create models of their proposed structures. By contrast, a wind-up mechanical or electronic toy is of little value if all one can do with it is watch it "perform," or if its use requires adult assistance" (Puckett & Black et al., 2009, p. 302).