Yes, the task gets blocked in the read() system call. Another task which is ready runs, or if no other tasks are ready, the idle task (for that CPU) runs.
A normal, blocking disc read causes the task to enter the "D" state (as others have noted). Such tasks contribute to the load average, even though they're not consuming the CPU.
Some other types of IO, especially ttys and network, do not behave quite the same - the process ends up in "S" state and can be interrupted and doesn't count against the load average.