Reference for anyone looking I to it: https://c4model.com/
There is also quite a lot of options for helping create these diagrams. I've found https://structurizr.com/ to be the best of what I've tried so far.
There are definitely limitations, for me being able to encode and version control diagrams and system documentation alongside a codebase made the tradeoff worth it.
Also, PlantUML + C4 is like peanut butter & jelly:
https://github.com/plantuml-stdlib/C4-PlantUML
I'll gladly give up control of layout, and accept some ugliness, to never again have to worry about dragging boxes and arrows to be pixel-aligned, and then do it all over again when I add another box...
It looks like Mermaid has C4 support too: