One has blocking calls whenever the CPU is waiting for some system to respond, e.g. waiting for an internet request. Is the CPU literally wasting time during these calls (I don't know whether there are machine instructions other than no-op that would correspond to the CPU literally wasting time). If not, what is it doing?
The thread is simply skipped when the operating system scheduler looks for work to hand off to a core. With the very common outcome that nothing needs to be done. The processor core then executes the HLT instruction.
In the HALT state it consumes (almost) no power. An interrupt is required to bring it back alive. Most typically that will be the clock interrupt, it ticks 64 times per second by default. It could be a device interrupt. The scheduler then again looks for work to do. Rinse and repeat.