86 toyota pickup 22re - blown engine or blown head gasket?

If it was just the head gasket that was blown would I see oil leaking from the valve cover gasket and sprayed all over the inside of the engine compartment?

It depends on where it’s broken at. The gasket seals the oil passages, coolant passages and the combustion chamber, so a blown head gasket can have any of the above mixing with anything else. Actually having anything leaking on the outside of the engine is pretty rare-- more likely you’ll be burning coolant or oil or have coolant in the oil and/or vice versa.