Blue is a mongrel who accompanies one of Springfield beggars; and from the look of this person, the meaning of Blue is more sad than blue. In the episode in which he appears for the first time (6th of the 17th season), he is lying on Homer's electronic panel, at the Springfield Nuclear Power Plant. Homer is busy being one of the candidates for mayor, so he puts the beggar in his place at the Plant. The fact is reported on TV by the statements by Smithers , who clearly does not support Homer's candidacy.
Blue and his beggar friend appear again the following season, right in the episode of the House of the Tree of Horrors (18x04), in the 1st of the 3 stories - "Married to the Bubble" - in which Homer becomes a gigantic people-eating monster, after eating an alien that was inside a meteorite that fell in his yard. Afraid of losing Marge's love because of what has become, Homer decides to do something "positive" with his problem; Mayor Quimby hires him to eliminate the city's beggars, hiding inside a fake hostel.
At the entrance to the hostel, Blue's friend suspects there is something wrong there, the dog goes to the door, sniffs and runs away in fear. The beggar does not react in time and is thrown by Joe Quimby into the hostel, or better, into the "Bubble-Homer".
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