It implies that the group is so small that they could all fit under a single blanket, highlighting their limited size.
Here are some examples of how it might be used:
* "There were only a handful of people at the meeting - you could throw a blanket over them."
* "The team is so small, you could throw a blanket over them."
It's important to note that the phrase is generally used in a casual, informal way, and it can sometimes be used to express a sense of disappointment or lack of enthusiasm about the group's size.