Yes, you can SEO your blog. You can search about SEO on Google or the easiest way is to look at it on this forum.
Yes you can do seo with blogspot blog. You can add meta and offpage optimization work to increase ranking of the blog.
Just do a google search for blogger tips that will send you in the right direction adding meta tag description and keywords certainly wont do your blog any harm.
The best SEO for crappy blogspot sites is to write unique quality content. If you can't do that, then give up now.