Failure detection and data recovery in a storage system

Systems and methods presented herein provide for failure detection and data recovery in a storage system. In one embodiment, a method operable in a storage system comprises locating failures in data blocks in storage area of a storage device, categorizing the failures into block groups, each block group comprising one or more data blocks having failures, and halting input/output (I/O) operations to data blocks in a first of the block groups due to the failures of the first block group. The method also includes detecting additional failures in one or more data blocks of other block groups remaining in the storage area, and determining when to fail the storage area of the storage device based on the detected failures.