The term originates in a 1928 article by astrophysicist Edward Arthur Milne, where it was used to describe the effects that the astronomical metals in a star's outer regions had on that star's spectrum.
[1] The name arose because the absorption lines act as a "blanket", causing the continuum temperature of the spectrum to rise over what it would have been if these lines were not present.
[2] Astronomical metals, which produce most of a star's spectral absorption lines, absorb a fraction of the star's radiant energy (a phenomenon known as the blocking effect) and then re-emit it at a lower frequency as part of the backwarming effect.
[3] The combination of both these effects results in the position of stars in a color-color diagram to shift towards redder areas as the proportion of metals in them increases.
The blanketing effect is thus highly dependent on the metallicity index of a star, which indicates the fraction of elements other than hydrogen and helium that compose it.