Favicon is short for "Favourite Icon" - a tiny image seen in the URL in the address bar of the browser. It serves as a "symbol" for the site.
How to Add a Favicon to the URL of a Site Hosted on Blogger.com?
1. Choose or make an image.
2. Increase the image contrast and color saturation. You can use a free image-editing program such as IrfanView.
3. Go to www.html-kit.com/favicon to create the favicon.
4. Upload the newly-created favicon to Google Pages.
5. Copy the URL of the uploaded image.
6. Log-in to Dashboard of your blog. Copy the code snippet shown here in the template just below the title tags (located at the top).
Blogger.com: Fix for "missing" favicon
How To Add a Favicon to your Blog? Dummies Guide to Google Blogger Beta.
Add Favicon icon to Blogger URL. Tips for New Bloggers.
Favicon generator and free .ico image host: Favicon for your blog. Dummies' Guide to Google Blogger, 06/2008.
How do I include a "favicon.ico" on my Web pages? Ask Dave Taylor, 2009.