I have been with this issue for a longtime but I never minded it, I thought Google automatically compress the images that are being uploaded to picasa web album via blogger and images from Google plus. This is something we do not notice or we don't care but it looks really ugly when some cover images are in bad quality.
So fixing is not big deal, all you got to do is make sure you are logged into your Google account that you use Blogger, then go to your Google + profile( example : +Mohamed Shimran ) from the left sidebar menu select settings , in settings page scroll down until you reach Photos and Videos :
Now you can see a sub section name Auto Enhance, that's the option/feature that reduces your image quality. In default it is set to Normal so just tick off then your changes will be saved automatically.
Congratulations, now your problem has been solved. Please leave your comments and share this useful article on your social networks.