Designs of this type have been subject to much investigation. Furthermore, they are now researched under a variety of different titles, usually under the restriction that they be resolvable or near-resolvable, including (Generalised) Whist Designs Pitch Tournament Designs and Team Tournaments. There are also links from NBIBDs to Generalized Bhaskar-Rao designs: if a GBRD has every element of the group G equally often in each column, and if the non-zero elements of every pair of rows differ in the same number of places, then the result is equivalent to a NBIBD with g sub-blocks.
This definition of a NBIBD is due to Preece: a definition of a different sort of NBIBD is due to Federer. The two have been combined to produce a definition in which all blocks are partitioned (in the same way) into sub-blocks, not necessarily of the same size, and then a sub-set of the blocks of a given size in a main block are specified to belong to a BIBD. Thus if the block size were 20, and the partitioning were {2,2,2,3,3,4,4} then a design might be specified in which 3 sub-blocks of size 2 in each block were required to form a BIBD, as were the 2 blocks of size 3 were required to comprise a BIBD, while each of the blocks of size 4 would also comprise a BIBD.
Further conditions can be imposed, as in the designs discussed by Fuji_Hara et al.
One particular case of the former is where the sub-blocks are all of the same size: each of the sub-blocks is associated with a different BIBD. This is what Greig & Rees called a Type II nesting; the Preece nesting above was called a Type I nesting.
There are other forms of nested block design.