How do I stop iOS updates nagging me? iOS7 allows you to delete the iOS8 update package if it has been automatically downloaded to your iPhone (Settings > General > Software Update > Delete). However, then Apple insists on notifying you again of the availability of the iOS8 update (though without downloading it), which means you permanently have a "1" by the Settings icon.

Is there a way of blocking this notification?
This is currently not possible.

If your device is jailbroken, you can install Software Update Killer or any number of badge-removing tweaks.