For another device like a smartphone to use any of the Bluetooth "services" which the micro:bit has, it must first be [paired with the micro:bit](/reference/bluetooth/bluetooth-pairing). Once paired, the other device may connect to the micro:bit and exchange data relating to many of the micro:bit's features.
This block starts an [event handler](/reference/event-handler) which in this case will run when a device which is connected to your micro:bit over Bluetooth disconnects.