Yes, that's how you would do it... assuming there was a way of getting to block2 (block1 and block2 might be the branches of an if-then-else, for example) and that there is a return after the 200: sub code.
You can do a similar thing calling macros, which are separate GDL objects rather than in-line code as in a gosub. With macros, you give the parameter values in the call statement.
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