This is something you would place in a site specific plugin. You should never modify the files shipped with a plugin since your changes will be overwritten when the plugin is updates. I also recommend against using a functions.php since the functionality may still be desired when/if you change themes, additionally, theme updates will overwrite your changes.
Something like the following should get you started with your filter (will require modification to work):
add_filter('bcn_breadcrumb_title', 'my_breadcrumb_title_filter', 11, 3);
function my_breadcrumb_title_filter($title, $type, $id)
{
if(is_single())
{
//Update title with whatever you want here, use the $type array entities and $id to help you
}
return $title;
}