You can have multiple WordPress installations on one XAMPP server. For Apache you need 2 different wordpress folders in htdocs, it doesn’t matter what they’re called, i.e. htdocs\blogone, htdocs\blogtwo, all that changes is their address, i.e. ‘localhost\blogone’, ‘localhost\blogtwo’
The same goes for the databases, as macmanx said, wordpress doesn’t care what the database is called, that’s why it asks for a database name in the wp-config.php file.