Vertically center a div inside another div

You can do it this way:

#wrapper {
  border: 1px solid red;
  width: 500px;
  height: 500px;
}
#block {
  border: 1px solid blue;
  width: 500px;
  height: 250px;
  position: relative;
  top: 50%;
  transform: translateY(-50%);
}

Here a live view: https://jsfiddle.net/w9bpy1t4/

Here is how I normally do this.

#wrapper {
border: 1px solid red;
width: 500px;
height: 500px;
position: relative;
}
#block {
border: 1px solid blue;
width: 500px;
height: 250px;
position: absolute;
top: 50%;
transform: translateY(-50%);
}

<div id="wrapper">
<div id="block"></div>
</div>

Easy way to make it dynamic.

The vertical-align property applies only to inline-level and table-cell elements (source). In your code you're working with block-level elements.

Try this flexbox alternative:

#wrapper {
    border: 1px solid red;
    width: 500px;
    height: 500px;
    display: flex;               /* establish flex container */
    align-items: center;         /* vertically center flex items */
}

#block {
    border: 1px solid blue;
    width: 500px;
    height: 250px;
    /* vertical-align: middle; */
}

<div id='wrapper'>
    <div id='block'> I'm Block </div>
<div>

Learn more about flex alignment here: Methods for Aligning Flex Items

Browser support: Flexbox is supported by all major browsers, except IE < 10. Some recent browser versions, such as Safari 8 and IE10, require vendor prefixes. For a quick way to add prefixes use Autoprefixer. More details in this answer.