Two dynamic covalent networks based on the Diels−Alder reaction were blended to exploit the properties of the dissimilar polymer backbones. Furan-functionalized polyether amines based on poly(propylene oxide) (PPO) FD4000 and polydimethylsiloxane (PDMS) FS5000 were mixed in a common solvent and reversibly cross-linked with the same bismaleimide DPBM. The morphology of the phase-separated blends is primarily controlled by the concentration of backbones. Increasing the PDMS content of the blends results in a dilute droplet morphology at 25 wt %, with a growing size and concentration of droplets and the formation of two separate PPO-and PDMS-rich layers at 50 wt %. Further increasing the PDMS content to 75 wt % leads to larger droplets and a thicker layer of the secondary phase. The hydrophobic PDMS phase creates a barrier against water, while the more hydrophilic PPO phase enhances the resistance against oxygen diffusion. Lowering the maleimide-to-furan stoichiometric ratio resulted in a decrease in cross-link density and thus more flexible and stretchable encapsulants. Changes in the stoichiometric ratio also affected the phase morphology due to resulting changes in phase separation and network formation kinetics. Lowering the stoichiometric ratio also resulted in enhanced self-healing properties of 96% at room temperature as a consequence of the increased chain mobility in the blended networks. The self-healing blends were used to encapsulate liquid metal circuits to create stretchable strain sensors with a linear electro-mechanical response without much drift or hysteresis, which could be efficiently recovered by 90% after the damage-healing cycles.