When you want to handle exceptions locally like this:
begin
for emp_rec in (select * from emp) loop
begin
my_proc (emp_rec);
exception
when some_exception then
log_error('Failed to process employee '||emp_rec.empno);
end;
end loop;
end;
In this example, the exception is handled and then we carry on and process the next employee.
Another use is to declare local variables that have limited scope like this:
declare
l_var1 integer;
-- lots of variables
begin
-- lots of lines of code
...
for emp_rec in (select * from emp) loop
declare
l_localvar integer := 0;
begin
-- Use l_localvar
...
end
end loop;
end;
Mind you, wanting to do this is often a sign that your program is too big and should be broken up:
declare
l_var1 integer;
-- lots of variables
...
procedure local_proc (emp_rec emp%rowtype):
l_localvar integer := 0;
begin
-- Use l_localvar
...
end
begin
-- lots of lines of code
...
for emp_rec in (select * from emp) loop
local_proc (emp_rec);
end loop;
end;