From Microsoft
Block blobs include features that help you manage large files over networks. With a block blob, you can upload multiple blocks in parallel to decrease upload time. Each block can include an MD5 hash to verify the transfer, so you can track upload progress and re-send blocks as needed.
When to use
Azure Files Provides an SMB interface, client libraries, and a REST interface that allows access from anywhere to stored files. You want to "lift and shift" an application to the cloud which already uses the native file system APIs to share data between it and other applications running in Azure.
Azure Blobs Provides client libraries and a REST interface that allows unstructured data to be stored and accessed at a massive scale in block blobs.
Azure Disks Provides client libraries and a REST interface that allows data to be persistently stored and accessed from an attached virtual hard disk. You want to lift and shift applications that use native file system APIs to read and write data to persistent disks.