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Hi, 2hi is your normal driving selection, this is NOT in 4WD mode. Both 4lo and 4hi is for 4 wheel driving, 4lo is used in extreme conditions and will gear the vehicle down to a very slow speed with maximum traction at the wheels, 4hi is for general 4 wheel driving in rough terrain, if you have lights on the dash than it will come on when you change gears, hope this help
Start with the simple and check the fuses and replace any one that has gone bad. Pay attention to the 4WD fuse and replace it is it has gone bad.
Thank you for using fixya and keep me posted, be glad to help you get your Blazer running 100% again soon.
Make sure that all 4 tires have the same tread on them, if one or more of them are different, then the 4wd may not engage. I had the same problem with my blazer, I changed only 2 tires at a time. The front tires would rotate faster than the rear ones, the gears in the transfer case won't line up right.