If $A,B$ are $2 \times 2$ matrices of real or complex numbers, then
$$AB = \left[ \begin{array}{cc} a_{11} & a_{12} \\ a_{21} & a_{22} \end{array} \right]\cdot \left[ \begin{array}{cc} b_{11} & b_{12} \\ b_{21} & b_{22} \end{array} \right] = \left[ \begin{array}{cc} a_{11}b_{11}+a_{12}b_{21} & a_{11}b_{12}+a_{12}b_{22} \\ a_{21}b_{11}+a_{22}b_{21} & a_{22}b_{12}+a_{22}b_{22} \end{array} \right] $$
What if the entries $a_{ij}, b_{ij}$ are themselves $2 \times 2$ matrices? Does matrix multiplication hold in some sort of "block" form ?
$$AB = \left[ \begin{array}{c|c} A_{11} & A_{12} \\\hline A_{21} & A_{22} \end{array} \right]\cdot \left[ \begin{array}{c|c} B_{11} & B_{12} \\\hline B_{21} & B_{22} \end{array} \right] = \left[ \begin{array}{c|c} A_{11}B_{11}+A_{12}B_{21} & A_{11}B_{12}+A_{12}B_{22} \\\hline A_{21}B_{11}+A_{22}B_{21} & A_{22}B_{12}+A_{22}B_{22} \end{array} \right] $$ This identity would be very useful in my research.
It depends on how you partition it, not all partitions work. For example, if you partition these two matrices
$$\begin{bmatrix} a & b & c \\ d & e & f \\ g & h & i \end{bmatrix}, \begin{bmatrix} a' & b' & c' \\ d' & e' & f' \\ g' & h' & i' \end{bmatrix} $$
in this way
$$ \left[\begin{array}{c|cc}a&b&c\\ d&e&f\\ \hline g&h&i \end{array}\right], \left[\begin{array}{c|cc}a'&b'&c'\\ d'&e'&f'\\ \hline g'&h'&i' \end{array}\right] $$
and then multiply them, it won't work. But this would
$$\left[\begin{array}{c|cc}a&b&c\\ \hline d&e&f\\ g&h&i \end{array}\right] ,\left[\begin{array}{c|cc}a'&b'&c'\\ \hline d'&e'&f'\\ g'&h'&i' \end{array}\right] $$
What's the difference? Well, in the first case, all submatrix products are not defined, like $\begin{bmatrix} a \\ d \\ \end{bmatrix}$ cannot be multiplied with $\begin{bmatrix} a' \\ d' \\ \end{bmatrix}$
So, what is the general rule? (Taken entirely from the Wiki page on Block matrix)
Given, an $(m \times p)$ matrix $\mathbf{A}$ with $q$ row partitions and $s$ column partitions $$\begin{bmatrix} \mathbf{A}_{11} & \mathbf{A}_{12} & \cdots &\mathbf{A}_{1s}\\ \mathbf{A}_{21} & \mathbf{A}_{22} & \cdots &\mathbf{A}_{2s}\\ \vdots & \vdots & \ddots &\vdots \\ \mathbf{A}_{q1} & \mathbf{A}_{q2} & \cdots &\mathbf{A}_{qs}\end{bmatrix}$$
and a $(p \times n)$ matrix $\mathbf{B}$ with $s$ row partitions and $r$ column parttions
$$\begin{bmatrix} \mathbf{B}_{11} & \mathbf{B}_{12} & \cdots &\mathbf{B}_{1r}\\ \mathbf{B}_{21} & \mathbf{B}_{22} & \cdots &\mathbf{B}_{2r}\\ \vdots & \vdots & \ddots &\vdots \\ \mathbf{B}_{s1} & \mathbf{B}_{s2} & \cdots &\mathbf{B}_{sr}\end{bmatrix}$$
that are compatible with the partitions of $\mathbf{A}$, the matrix product
$ \mathbf{C}=\mathbf{A}\mathbf{B} $
can be formed blockwise, yielding $\mathbf{C}$ as an $(m\times n)$ matrix with $q$ row partitions and $r$ column partitions.