Line a baking sheet with foil; set aside. Heat candy coating in a heavy medium saucepan over low heat, stirring constantly until candy is melted and smooth. Remove from heat.
Stir in 1/2 cup of the crushed candy canes. Pour mixture onto the prepared baking sheet. Spread mixture to about 3/8-inch thickness. Sprinkle with the remaining crushed candies.
Chill candy about 30 minutes or until firm. (Or, let candy stand at room temperature for several hours until firm.) Use foil to lift firm candy from the baking sheet; carefully break candy into pieces. Store tightly covered up to 2 weeks. Makes 1 pound (16 servings).