In Terraria, the mud block seems a little useless, I read on the crappy Wikia page that Mud blocks can be used to grow mushrooms in some fashion.
From Mud on Wikia:
Mud is slightly darker than normal
Dirt. It will sustain Underground
Jungle grass as well as Mushroom
Grass, but only at below-zero depths.The largest single source of Mud in
any given world is the Underground
Jungle.Does anyone know how to do this?
Should I plant mud blocks next to some green growth?
Answer
Mud is required to grow mushroom grass (which gives glowing mushrooms) and jungle grass (which mimics the underground jungle).
As long as your depth (as per a depth meter) is below “sealevel”, both types of grass can be planted.
Here’s an example mushroom farm:
For further instruction on how to best take advantage of mushroom farms like the above, see the wiki.
(For what it’s worth, the wiki you linked to was not the official Terraria wiki)
Attribution
Source : Link , Question Author : Mark Rogers , Answer Author : angussidney