The magnetic and electronic phase diagram of a model for the quasi-one-dimensional alkali metal iron selenide compound Na$_2$FeSe$_2$ is presented. The novelty of this material is that the valence of iron is Fe$^{2+}$ contrary to most other iron-chain compounds with valence Fe$^{3+}$. Using first-principles techniques, we developed a three-orbital tight-binding model that reproduces the {it ab initio} band structure near the Fermi level. Including Hubbard and Hund couplings and studying the model via the density matrix renormalization group and Lanczos methods, we constructed the ground state phase diagram. A robust region where the block state $uparrow uparrow downarrow downarrow uparrow uparrow downarrow downarrow$ is stabilized was unveiled. The analog state in iron ladders, employing 2$times$2 ferromagnetic blocks, is by now well-established, but in chains a block magnetic order has not been observed yet in real materials. The phase diagram also contains a large region of canonical staggered spin order $uparrow downarrow uparrow downarrow uparrow downarrow uparrow$ at very large Hubbard repulsion. At the block to staggered transition region, a novel phase is stabilized with a mixture of both states: an inhomogeneous orbital-selective charge density wave with the exotic spin configuration $uparrow uparrow downarrow uparrow downarrow downarrow uparrow downarrow$. Our predictions for Na$_2$FeSe$_2$ may guide crystal growers and neutron scattering experimentalists towards the realization of block states in one-dimensional iron-selenide chain materials.
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