My original response to this question is so long that I was asked to convert it into a blog post. That answer has four main sections.
The first section looks at nineteenth-century American discussions of the various slang meanings of blizzard—which include “a stunning blow,” “an unanswerable question or argument,” and “a violent and destructive snow-storm”—and their possible origin. The second section reviews analyses of blizzard by British writers between 1888 and 1921, with a particular focus on its arguable connection to Midlands dialect words such as blizzer, blizzom, and blizzy. The third section notes attempts by more-recent etymologists to identify the roots of the word (in French, German, Anglo-Saxon, or elsewhere) and to pinpoint where the snowstorm meaning of blizzard originated. On all of these points, no clear scholarly consensus emerges.
Finally, in the fourth section of my answer/blog post, I look at occurrences of blizzard in publications dated between 1834 and 1870 (the date of the first authenticated newspaper use of the word to refer to a snowstorm). Of the 34 unique instances of blizzard that I cite in that section, 12 refer to a blast or volley from one or more firearms or cannons, 8 refer to verbal blasts, 7 to a heavy or painful physical blow not involving a firearm, 3 to a literal or figurative attack that is not otherwise identified, 2 to a mild oath, 1 to a blazing fire, and 1 to a shot of liquor. Especially interesting is the emergence during the U.S. Civil War period of blizzard in the sense of a volley or fusillade of bullets, which provides a more satisfying immediate source meaning of the word lading up to the fierce snowstorm meaning than do the earlier blazing fire and stunning blow meanings.
The origin of blizzard in the sense of snowstorm remains somewhat mysterious, but the evidence of U.S. usage prior to 1870 suggests that the word had appeared in newspapers across the nation and that it had multiple active meanings as a slang term in 1870. Under the circumstances, the notion that blizzard in the sense of snowstorm may simply have been some sort of onomatopoeic invention of an Iowa newspaperman—and only coincidentally identical to the slang word blizzard as used in other contemporaneous senses—seems quite far-fetched.
Best Answer
OED to the rescue!
The entry for can meaning jail mentions that it is slang, originally and chiefly from the United States. Its earliest citation is from 1912.
As it appeared in print in 1912, it would presumably have been in spoken slang usage before then.