How do I make a placed block like in terraria

Like this youtube.com/watch

Your question is extremely vague.

I want to place something say a block of wood in almost a grid way such as if block is there cannot place and only place in a 32by32 size

Have you tried the tilemap object?

Im talking like in game where my player can make destroy and adjust blocks

Just do a search. Many people have asked about this.