We are looking for a way to visually describe to each other the logic flow of particular module or the application itself. I constantly stumble upon different block diagrams here and there, but still not sure if this is any kind of standard and has any particular name. What approach other teams or companies usually use in such cases?
What is the way to visually outline application logic flow?
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UML contains some diagram types that matches what you seek.
http://en.wikipedia.org/wiki/Activity_diagram
You can create flow diagrams using Dia or Microsoft Visio. Dia is free though and quite decent
http://dia-installer.de/