Data parameterization in BlazeMeter can be handled through CSV files. These files are uploaded to the test configuration and then referenced within the script. The CSV Data Set Config element is used for this purpose, where each row of the file represents a unique set of data. Variables defined in the CSV file can be utilized throughout the script. This allows different users to use different data sets during testing, simulating real-world scenarios more accurately. It’s important to ensure that the number of rows in the CSV file matches or exceeds the number of virtual users to avoid repetition of data.