Yes, dogs like blankets covering them for both psychological and physiological reasons.
Much like humans, dogs enjoy getting comfortable and cosy when the temperature is lower, and can enjoy the sensation of curling up in a blanket. Even better if it’s yours as well – dogs have an especially strong sense of smell, and are nearly certain to like it if they’re rolled up in a blanket with their owner’s scent on it.
For further information, explore our blog, How To Keep Pets Warm In Winter.