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Is there a good python library to connect to my locally running bitcoin node and query it? Such as view data block by block, txs, network difficulty at the time of each block, and other parameters? There is web3.py for Ethereum and other EVM based chains, but I couldn't find something similar which is up to date for Bitcoin.

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There is python-bitcoinrpc. Even though is not recent is completely valid. A list of all the available api calls is available here. If you don't want to use this library you can connect to your bitcoin node with a library such as requests and make direct Http RPC calls. You can find more information about the RPC interface on the wiki.

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