Thanks for the patience. I had a quick look and I think the doc examples are using uppercase there as a placeholder not an example. "BLOCK_NAME" is representing where you'd put your block name! I can see that's confusing though.
The actual variables section of the docs does a pretty good job of setting out that names should adhere to traditional naming conventions:
https://docs.prefect.io/latest/guides/variables/?h=variables
I can see an argument for adjusting those rules if there's a user demand for more flexibility. I'd encourage you to open an issue in the
prefect repo so we can track interest in it