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I have 87 S10 blazer w/small block 350
bought it a week ago it has a TH350 trans but it only has 1&2 gear put it in drive it feels like N has after market b&m shifter if I put it in drive it does nothing it was built to be a drag car what my question is is there something that could of been done to tranny to lock 3rd gear out?
Yes. Gear shifts are a function of where the detent lever is and what the valve body is set up to do. If the valve body has been modified or if the detent level has been modified then a gear could be skipped. It's also possible that the seals have ruptured on the 3rd gear pack and that 3rd gear doesn't engage because it can't.
First step would be to make sure the detent lever moves to all positions and then remove the valve body and restore it to stock. If that doesn't restore 3rd gear, then the next logical step is to rebuild the tranny.