Blocking

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Blocking in Audio Drama is working out the physicality of a scene- where things are. Many consider this as panning and that is partly true. But a recognition of blocking operates across the spectrum of writing, acting/directing and production.

Blocking in Writing
The better the writer understands the setting of his story, the more clearly the listening audience can picture where the action is taking place. Make certain you give "production notes" to your producers in whatever tool you use for script writing. Be sure to include any kind of voice notes for a line to actors in the dialog line before the line (or word) is spoken.
Ideally Production Notes are heavily indented, in capitals and surrounded by square brackets, like this:

                          [MARY SUE IS SPEAKING FROM THE BOTTOM OF A 30 FOOT PIT]
The actor's note would go something like this:

MARY SUE: (SHOUTING) Hey Brainiac! Down here!

Also include in the Sound Effects notes, ideas about how the producer can create the mood and the setting. One way is by identifying the Ambiance. Creating good notes in a script is an art by itself, and depends upon who you're working with. Some people prefer wide brush strokes, others really detailed.
 Example 1:
SFX: Morning rural meadow ambiance.

Example 2:
SFX: 6 AM sunrise in a farming community. Robins and crows are singing back and forth. A light wind blows across several trees. The sky in growing brighter and the grass is covered in dew.

Have conversations between your writers and producers regularly about the way you format your works. Clarity is key for everyone.

Blocking in Acting
This is the most overlooked element for an actor. Many actors perform their lines as if they are always in the same place. They don't realize that often speak a little louder when they walk than when you are standing still. You have one tone of voice when you're calling than when you're next to someone. It's not just a matter of loudness, but includes a respect for setting and tone. (Tone being the emotion an author puts into a piece. Mood being the emotion a listen takes from a piece.)
 As an actor ask yourself, "Where am I standing in this scene?" Are you even standing? Your posture makes a difference. If you're running that makes a difference. Are you slightly out of breath while you're running? Is there no variance? Consider blocking to find the truth in the scene.

Blocking in Production
A good Producer in Audio Drama knows how to capture the notes of a writer perfectly and only adds if it adds to the notes. Producers who assume different sounds and effects and blocking without following the writer's notes run the risk of contradicting a later scene, getting a character wrong, or just throwing the pacing off. Of course, a good producer "gets" what the author was intending and helps to clarify the writing.
That bears repeating.
A good Producer does not layer more into a production but rather clarifies the writing for the listener.
Panning naturally helps define blocking in a scene better than almost anything else, as a listener who is using their headphones can get a  full feel of exactly where the characters are standing. It is better to pan characters further out than too close together if you want to develop space. I'm not suggesting you pan them all the way on opposite sides as that suggests great distance, but a mere 15 points between two characters may not be enough.

In the end, blocking is a crucial item that all the production team needs to consider carefully. How much does your writer talk to their actors about it? How much does your Producer speak to the writer about their words?