unquote is a function to “create code from data” simply said.

When this is executed
def unquote(test_func)(), do: unquote(test_block)

the result will be
def :description_as_atom(), do: [list, of, test, blocks]
which will be valid code for the compiler.

Short: unquote will mostly be called in macros to generate code from parameters (which is data at compile time), so only the result of unquote will stay afterwards.

Eh, not really like assembler, it is the very definition of AST. Elixir’s AST.

The compilation process goes: Elixir → Elixir’s AST (what quote gives you) → Erlang (Abstract Format, basically it’s AST) → Core Erlang → BEAM
With a variety of translators along the way too.

Basically take this Elixir:

defmodule :tester do

  def hi, do: "there"

end

To this Elixir AST:

{:defmodule, [context: Elixir, import: Kernel],
 [:tester,
  [do: {:def, [context: Elixir, import: Kernel],
    [{:hi, [context: Elixir], Elixir}, [do: "there"]]}]]}

To this Erlang:

-module(tester).
-export([hi/0]).
hi() -> <<"there">>.

To this Core Erlang:

module 'tester' ['hi'/0,
                 'module_info'/0,
                 'module_info'/1]
    attributes []
'hi'/0 =
    %% Line 3
    fun () ->
        #{#<116>(8,1,'integer',['unsigned'|['big']]),
          #<104>(8,1,'integer',['unsigned'|['big']]),
          #<101>(8,1,'integer',['unsigned'|['big']]),
          #<114>(8,1,'integer',['unsigned'|['big']]),
          #<101>(8,1,'integer',['unsigned'|['big']])}#
'module_info'/0 =
    fun () ->
        call 'erlang':'get_module_info'
            ('tester')
'module_info'/1 =
    fun (_cor0) ->
        call 'erlang':'get_module_info'
            ('tester', _cor0)

To this BEAM Assembly:

00007F031584F908: i_func_info_IaaI 0 tester hi 0
00007F031584F930: move_return_c <<"there">>

00007F031584F940: i_func_info_IaaI 0 tester module_info 0
00007F031584F968: move_cr tester r(0)
00007F031584F978: allocate_tt 0 1
00007F031584F988: call_bif_e erlang:get_module_info/1
00007F031584F998: deallocate_return_Q 0

00007F031584F9A8: i_func_info_IaaI 0 tester module_info 1
00007F031584F9D0: move_rx r(0) x(1)
00007F031584F9E0: move_cr tester r(0)
00007F031584F9F0: allocate_tt 0 2
00007F031584FA00: call_bif_e erlang:get_module_info/2
00007F031584FA10: deallocate_return_Q 0

And that is what is loaded by the VM.

@laiboonh: Inside quote do_block your expressions are quoted.
For example:

defmodule Example do
  defmacro sample do
    IO.inspect quote do: a
    :ok
  end
end
require Example
Example.sample
# {:a, [], Example}

Similarly test_func and description are quoted too.
Simple explanation for new developer is that unquote converts quoted expressions (AST) to their “normal” form.
For example:

defmodule Example do
  defmacro sample(a) do
    quote do
      unquote(a)
    end
  end
end
require Example
Example.sample(5)
# returns 5 instead of: {:a, [], Example}

So your line is “translated” from Elixir AST:

def {:test_func, [], ModuleName}(), do: {:block, [], ModuleName}

to “normal” code like:

def test_func(), do: test_block

You can see how it looks by inspecting variables in quote do_block without unquote part.
Please see: Quote and unquote for more informations.