The phrase often implies creating a physical barrier within a bigger space. The studio apartment was too open, so they decided to partition off a corner for privacy.
Pro Tip 2/3
Temporary Change
'Partition off' suggests the division can be temporary and doesn't always need construction. They'll partition off the hall with curtains for the event tonight.
Pro Tip 3/3
Space Management
The phrase is common in discussions about managing or optimizing use of space. They had to partition off part of the warehouse for different goods.