Epidural anesthesia blocks pain in a specific region of the body by blocking nerve impulses from the lower spinal segments, resulting in decreased sensation in the lower half of the body. It provides pain relief rather than total lack of feeling. There are different types of epidurals depending on the location of administration, including cervical, thoracic, lumbar, and caudal epidurals, which are used for operations below the diaphragm and in certain patient populations or conditions.