Blankets is set in Wisconsin in the 1990s. Like the narrator, the main character is called Craig. It tells of his strict, fundamentalist Christian upbringing and growing up. Together with his brother, Craig tries to escape everyday life by painting. However, his parents show little interest in his artistic talent. In high school, Craig is an outsider until he meets Raina, who through her love shows him the way to a shared, positive adult life, free from the constraints and doctrines of his upbringing.
The work is largely based on Thompson's own experiences or his view of things on them. The love story about Raina is real. However, Thompson also made changes to his life story, so the band completely withholds the existence of a sister who also grew up in the Thompson household.