About Nested Blocks
You can use Blocks within Block definitions to simplify the structure of a complex Block. A Block embedded in another Block is called a nested Block.
Example:
The Block Workplace contains two Blocks: Chair and Desk.
Chair and Desk are nested into Workplace.

The Block Tableset contains one Block for the table and several Blocks for chairs.
Table and Chair Blocks are nested into Tableset.

In practice, there are situation when nested Blocks are accidentally created. For example, when inserting a drawing as Block, then Blocks from the drawing are nested.
All Blocks from the drawing, including the nested Blocks are accessible from the Block Structure palette.
Note: A nested Block definition may contain other nested Blocks. Nested Blocks cannot reference themselves.