babel-plugin-transform-es2015-block-scoping transforms ES2015 let and const declarations into their ES5 equivalents using var. This plugin ensures that block-level scoping is maintained during the transformation. It is a crucial part of broader Babel configurations aiming to provide compatibility with older JavaScript environments by transpiling modern ES2015 code. By utilizing this plugin, developers can effectively manage variable scoping across different browsers and Node.js versions, mitigating potential runtime errors associated with let and const keywords.