The grid runs on AC, alternating current
Batteries run on DC, direct current
That block (and the block on your phone charger) changes the AC to DC so it can charge the battery and power the device.
In the US and Canada, our grid runs at 60 Hz, so it oscillates 60 times a second. So the owner in an outlet is going from 120V to 0V 60 times every second.
The battery needs a lower voltage and direct current. The USB for your phone, for example is 5V DC, so the voltage is stepped down to 5V and converted to DC
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