My friend and I will have 2 days to drive around Iceland (we are renting a car). We are spending our first night near the Blue Lagoon (due to travel time & logistics). From there we want to start exploring for a couple days before heading back to Reykjavik to meet up with a couple other friends. Any recs?
I hope you mean "around in Iceland", not literally around. The ring road is around 1300 km (over 800 miles) long. I have done it, we spent a week, and no less is recommended if you want to experience the whole island.
https://www.nordicvisitor.com/blog/5-things-to-know-about-icelands-ring-road/
For two days; I recommend staying in the SW; Reykjanes peninsula, Krysuvik mudpots, Thingvellir, Gullfoss, Geysir. East to Skeidararsandur if you have time (unlikely).
https://www.ricksteves.com/europe/iceland/itinerary
We recently did both the Golden Circle and South Coast loops. Both are lovely.
We just returned from an Iceland (5 nights) and Norway trip. Our take: don't bother doing the south coast with your limited time UNLESS you can get all of the way to the Jokulsarlon iceberg lagoon which is spectacular. We stayed two nights at the Foss Hotel Nupar - from there it was an easy day trip to the lagoon.
When is this trip and what are the plans for after the other friends arrive?