Its a new update by Blogger on its custom domain part. Some time ago here on MBT, you read 10+ Reasons Why you should buy a Custom Domain For Blogger. Having a custom domain have many advantages and would best suite you if you are serious about your blogging career and take it just not as a hobby but as a business.
And for that you should be knowing What is Custom Blogger Domain and Blogger Subdomain? if you are interested in getting a domain through Blogger its self. To briefly explain, you can convert your blogspot domain name to a custom one like (yourdomainname.com) through Blogger, which is linked with Godady hosting service (which also provides domains). Though you can always use your own domain name that you have bought from any other domain registrar.
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