In my custom module magento1/app/code/local/Maddyboy/Instagramapi/data/instagramapi_setup/data-upgrade-0.1.0-0.1.1.php

<?php
$content = 'BLOCK CONTENT HERE';
//if you want one block for each store view, get the store collection
$stores = Mage::getModel('core/store')->getCollection()->addFieldToFilter('store_id', array('gt'=>0))->getAllIds();
//if you want one general block for all the store viwes, uncomment the line below
$stores = array(0);
foreach ($stores as $store){
    $block = Mage::getModel('cms/block');
    $block->setTitle('Block title here');
    $block->setIdentifier('block_identifier_here');
    $block->setStores(array($store));
    $block->setIsActive(1);
    $block->setContent($content);
    $block->save();
}

config.xml

<Maddyboy_Instagramapi>
      <version>0.1.1</version> // changed to 0.1.1
    </Maddyboy_Instagramapi>

magento1/app/design/frontend/base/default/layout/instagramapi.xml

<?xml version="1.0"?>   
<layout version="0.1.1"> 

Still static block is not shown in admin pannel.