The 20-year-old will remain at the Pirelli Stadium until January 12, 2013 and could be involved in Albion's league fixture at home to Aldershot on Tuesday evening.
Leicester signed Blyth from Southern League Premier Division outfit Leamington after he had previously had spells at Bedworth United and Nuneaton Griff.
He has gone on to score six goals in 11 games for the Foxes' Development Squad this season.
"Jacob is a big powerful boy and is top scorer for Leicester's Development Squad this season. He's someone who we've watched a few times now and we've got really good links with Leicester," said Burton boss Gary Rowett. "It's important that we keep our momentum going and that we have all bases covered once the loan transfer window closes. He's someone who can play in a similar mould to Calvin Zola so it gives us that option up front.
"He's a young lad but he's played football at non-league level and scored goals all the way through. He'll be hungry and we're delighted to have him here."