Gutenberg Blocks are the building blocks of content in WordPress 5.0's new editor. There are two types of blocks - static blocks contain fixed content and require minimal coding, while dynamic blocks fetch external data and can update in real time. Static blocks are suitable for simple elements like headings and paragraphs, while dynamic blocks integrate features like latest blog posts or weather updates by connecting to APIs. The document then provides examples and characteristics of each block type and guides the reader in creating their first static Gutenberg block.