Mutex lock: what does "blocking" mean?

Blocked means execution gets stuck there; generally, the thread is put to sleep by the system and yields the processor to another thread. When a thread is blocked trying to acquire a mutex, execution resumes when the mutex is released, though the thread might block again if another thread grabs the mutex before it can.

There is generally a try-lock operation that grab the mutex if possible, and if not, will return an error. But you are eventually going to have to move the current event into that queue. Also, if you delay moving the events to the thread where they are handled, the application will become unresponsive regardless.

A queue is actually one case where you can get away with not using a mutex. For example, Mac OS X (and possibly also iOS) provides the OSAtomicEnqueue() and OSAtomicDequeue() functions (see man atomic or <libkern/OSAtomic.h>) that exploit processor-specific atomic operations to avoid using a lock.

But, why not just process the events on the main thread as part of the main run loop?

The simplest way to think of it is that the blocked thread is put in a wait ("sleeping") state until the mutex is released by the thread holding it. At that point the operating system will "wake up" one of the threads waiting on the mutex and let it acquire it and continue. It's as if the OS simply puts the blocked thread on a shelf until it has the thing it needs to continue. Until the OS takes the thread off the shelf, it's not doing anything. The exact implementation -- which thread gets to go next, whether they all get woken up or they're queued -- will depend on your OS and what language/framework you are using.

Too late to answer but I may facilitate the understanding. I am talking more from implementation perspective rather than theoretical texts.

The word "blocking" is kind of technical homonym. People may use it for sleeping or mere waiting. The term has to be understood in context of usage.

Blocking means Waiting - Assume on an SMP system a thread B wants to acquire a spinlock held by some other thread A. One of the mechanisms is to disable preemption and keep spinning on the processor unless B gets it. Another mechanism probably, an efficient one, is to allow other threads to use processor, in case B does not gets it in easy attempts. Therefore we schedule out thread B (as preemption is enabled) and give processor to some other thread C. In this case thread B just waits in the scheduler's queue and comes back with its turn. Understand that B is not sleeping just waiting rather passively instead of busy-wait and burning processor cycles. On BSD and Solaris systems there are data-structures like turnstiles to implement this situation.

Blocking means Sleeping - If the thread B had instead made system call like read() waiting data from network socket, it cannot proceed until it gets it. Therefore, some texts casually use term blocking as "... blocked for I/O" or "... in blocking system call". Actually, thread B is rather sleeping. There are specific data-structures known as sleep queues - much like luxury waiting rooms on air-ports :-). The thread will be woken up when OS detects availability of data, much like an attendant of the waiting room.