This is a fantastic (and easy!) idea if your kids are just starting to outgrow Duplo blocks, and coincidentally just starting to be interested in reading. Lindsey at Filth Wizardry took a marker and some white stickers and wrote out dozens of words her kids can sound out or already read.
Lindsey reports that her kids had a blast making story walls, then stacking the blocks to create vertical sentences.
For her younger daughter, Lindsey came up with a set of blocks that had a slightly different take on this idea:
They just had vowel bricks with a different vowel on each of the four sides, and consonant bricks with four consonants on each side. I also made a few bricks that had combinations like "ch", "sh", "th" etc, because she's learning those sounds in words too.
For more photos and variations on this idea, be sure to check out the original post at Filth Wizardry.
(Images: Lindsey Boardman)