Big block vs small block typically is in direct relation to the size of the crank case. Big blocks are typically for 1/8 scale vehicles while small blocks are for 1/10 scale and smaller.
The 427 is actually 4.27cc which is the volume of the combustion chamber at bottom dead center. That is also 0.2606 cubic inch, so a .26ci.
This is a photo of a .21 compared to a .18:
The top pink headed engine is the .21. Notice how the crank case is longer and taller. It's also fatter and requires a larger engine mount.
Now, with the advent of the t-maxx, there were a few new engines made that were described as mid-blocks. These are higher displacement engines (larger than .18) that fit into an area the same size as a small block. Big torque, little package.
A .21-.32 (or larger) is typically the range for big blocks. .10-.18 is typically the range for small blocks. .12 and .21 are usually used for racing but they are also typically tuned for more power which makes them more pricey than their larger cousins.
The larger displacement engines (larger than .21) were generally made to get more bang for your buck. You can get a .21 that will rival a .32 for power, but it will cost you 3 times more and generally no matter what you do, the .21 will have higher peak RPM's.
I know there are a few engines out there that are technically big blocks like the TRX2.5 (same bore/stroke diameter/length), but what I described above is the general differences between hobby "big block" and "small block".