The Azure Blockchain Workbench allows developers to quickly deploy blockchain networks along with relevant Azure services to build blockchain applications. It enables users to create blockchain apps, manage users and applications, integrate blockchain with other apps, deploy networks, and synchronize on-chain and off-chain data using SQL Server. The Workbench provides an example of tracking milk from dairy farmers to manufacturers using smart contracts and IoT to ensure correct temperatures throughout the process and update an immutable digital ledger.