Why when we look through a telescope in space, do the billions of stars not block our view from seeing further?
OK, Imagine the stars at distance x block an area of the sky. At a distance of 2x there should be four times as many stars, but they would seem four times smaller in terms of area covered. Thus, the blocking grows linearly until a significant part of the sky is blocked. The stars within 20 light years (excluding the Sun), blocks approximately $4.3 \cdot 10^{-16}$ of the sky. Even if we scale that up to the radius of the universe, 45 billion light years, only about $2 \cdot 10^{-6}$ of the sky is covered.

Even that tiny number is an overestimate, as we live in an extremely star-dense part of the universe, our galaxy.

Space is simply too big.