The first step to figuring out a plausible system of timekeeping for my blind society is determining what natural cycles it could be based on.
Day and year
It's pretty obvious that day and year would both be observable. The day would be observable directly from day/night temperature variations and differences in the felt direction of the sun on non-cloudy days. It would also be observable indirectly through diurnal activities and phenomena in the living world - e.g. birds singing at dawn, flowers being open in the day and closed at night. Probably the natural time to mark the beginning of a day would be at a day/night boundary - either sunrise or sunset.
The year would be observable directly through differences in seasonal temperature/weather patterns; if they're in a sufficiently non-tropical location, it would also be observable through differences in day/night length; I'm not sure how noticeable differences in sun angle through the year would be. The year would also be observable indirectly through such things as plant growth and ripening, and animal migration and life cycles. It's not clear to me how you'd decide where to mark the beginning of a year, but I suspect animal and plant cycles would probably provide clearer marking points than weather and day length.
Lunar cycle: not observable
The moon, and thus the lunar month, would not be directly observable.
The lack of an obvious basis for a lunar month is interesting, because most Earth calendars have a month of some sort, whether it remains synchronized to the lunar month or not. There are, however, a few calendars that don't have months with lengths based on the lunar month; the ones I've seen use some other intermediate unit between days and years:
Akan calendar
Pentecontad calendar
There are also some other calendars that do include some reckoning of months, but also include a different sub-year group of days that is not dependent on the month:
Maya calendar
Javanese calendar
Other cycles
Although the lunar cycle would not be directly observable, the tidal cycle, which is related to the lunar cycle, would be. The society is located on an island in the ocean, so they would have experience with coasts and tides. What they would observe in tides depends on what kind of tides their location has. I learnt recently from Wikipedia that there are three main kinds of tidal patterns. Diurnal tides have one high tide and one low tide a day. Semidiurnal tides have two high tides and two low tides a day, with relatively similar heights for the highs and relatively similar lownesses for the lows. Mixed tides have two highs and two lows a day, but one high is significantly higher than the other, and one low is significantly lower than the other. My experience with tides is with mixed tides, and I had assumed they were universal. This map shows that most places in the world have either semidiurnal or mixed tides, so I can assume at least that my blind society would have experience with two highs and two lows a day. Of course, the point of bringing up the tidal cycle is that it's not exactly per day - a tidal day is longer than a solar day by about an hour. If I understand right, the tidal day and the solar day will resynchronize every month. Also, the relationship between the position of the sun and moon creates spring tides (when the tidal action of sun and moon is aligned at full and new moon) and neap tides (when the tidal action of sun and moon is crosswise at half moon). Tidal cycles might give a basis for the creation of a month or half-month period, but I'm not sure. It takes more to extract that from tidal patterns than from simple lunar phases. And how important the tidal cycle would be to them would depend on how much use they make of the ocean and intertidal zone.
Another observable cycle would be women's menstrual cycles. The length is approximately a month, but can vary considerably. And the timing is different for different women, so unlike astronomically-determined cycles, there's not a communally-accessible single standard.
I can't think of any other observable plausibly-useful natural cycles that are smaller than a year.
Small time units and echolocation
This observation is kind of irrelevant to the above thoughts about calendars, and is more relevant to the topic of time units smaller than a day, which I'm not really digging into right now.
They use echolocation. For sufficiently distant objects, this involves making a click and hearing a distinct echo a brief time later. Although their use of echolocation is so habitual that they usually primarily perceive the distance and location of the object, not the timing of the echo, I expect they would be able to be aware of the timing of the echo if they pay attention to it. This makes it likely that they would develop a concept of the speed of sound, and would be able to associate echo-times with distances. Since distances are easier to measure than times, it would be easy to speak about brief times in terms of the distance that echo-time corresponds to.
Day and year
It's pretty obvious that day and year would both be observable. The day would be observable directly from day/night temperature variations and differences in the felt direction of the sun on non-cloudy days. It would also be observable indirectly through diurnal activities and phenomena in the living world - e.g. birds singing at dawn, flowers being open in the day and closed at night. Probably the natural time to mark the beginning of a day would be at a day/night boundary - either sunrise or sunset.
The year would be observable directly through differences in seasonal temperature/weather patterns; if they're in a sufficiently non-tropical location, it would also be observable through differences in day/night length; I'm not sure how noticeable differences in sun angle through the year would be. The year would also be observable indirectly through such things as plant growth and ripening, and animal migration and life cycles. It's not clear to me how you'd decide where to mark the beginning of a year, but I suspect animal and plant cycles would probably provide clearer marking points than weather and day length.
Lunar cycle: not observable
The moon, and thus the lunar month, would not be directly observable.
The lack of an obvious basis for a lunar month is interesting, because most Earth calendars have a month of some sort, whether it remains synchronized to the lunar month or not. There are, however, a few calendars that don't have months with lengths based on the lunar month; the ones I've seen use some other intermediate unit between days and years:
Akan calendar
Pentecontad calendar
There are also some other calendars that do include some reckoning of months, but also include a different sub-year group of days that is not dependent on the month:
Maya calendar
Javanese calendar
Other cycles
Although the lunar cycle would not be directly observable, the tidal cycle, which is related to the lunar cycle, would be. The society is located on an island in the ocean, so they would have experience with coasts and tides. What they would observe in tides depends on what kind of tides their location has. I learnt recently from Wikipedia that there are three main kinds of tidal patterns. Diurnal tides have one high tide and one low tide a day. Semidiurnal tides have two high tides and two low tides a day, with relatively similar heights for the highs and relatively similar lownesses for the lows. Mixed tides have two highs and two lows a day, but one high is significantly higher than the other, and one low is significantly lower than the other. My experience with tides is with mixed tides, and I had assumed they were universal. This map shows that most places in the world have either semidiurnal or mixed tides, so I can assume at least that my blind society would have experience with two highs and two lows a day. Of course, the point of bringing up the tidal cycle is that it's not exactly per day - a tidal day is longer than a solar day by about an hour. If I understand right, the tidal day and the solar day will resynchronize every month. Also, the relationship between the position of the sun and moon creates spring tides (when the tidal action of sun and moon is aligned at full and new moon) and neap tides (when the tidal action of sun and moon is crosswise at half moon). Tidal cycles might give a basis for the creation of a month or half-month period, but I'm not sure. It takes more to extract that from tidal patterns than from simple lunar phases. And how important the tidal cycle would be to them would depend on how much use they make of the ocean and intertidal zone.
Another observable cycle would be women's menstrual cycles. The length is approximately a month, but can vary considerably. And the timing is different for different women, so unlike astronomically-determined cycles, there's not a communally-accessible single standard.
I can't think of any other observable plausibly-useful natural cycles that are smaller than a year.
Small time units and echolocation
This observation is kind of irrelevant to the above thoughts about calendars, and is more relevant to the topic of time units smaller than a day, which I'm not really digging into right now.
They use echolocation. For sufficiently distant objects, this involves making a click and hearing a distinct echo a brief time later. Although their use of echolocation is so habitual that they usually primarily perceive the distance and location of the object, not the timing of the echo, I expect they would be able to be aware of the timing of the echo if they pay attention to it. This makes it likely that they would develop a concept of the speed of sound, and would be able to associate echo-times with distances. Since distances are easier to measure than times, it would be easy to speak about brief times in terms of the distance that echo-time corresponds to.