A blanket term is a word or phrase that is used to describe multiple groups of related things. The degree of relation may vary. Blanket terms often trade specificity for ease_of_use; in other words, a blanket term by itself gives little detail about the things that it describes or the relationships between them, but is easy to say and remember. Blanket terms often originate as slang, and eventually become integrated into the general vocabulary.
I have always said the term space blanket is a misnomer, the thin plastic sheet is neither a miracle material nor a blanket.
The blanket should not be wrapped too tightly, as the air trapped between the blanket and skin provides further insulation, helping to prevent conduction of heat to the outside environment.
A plastic emergency blanket (2oz.) can be carried in the Group First Aid Kit to provide a clean area on which to tend an injured companion.