Favicon is 'Favicon is a small icon(image) displayed at the beginning of the address bar of the browser.It is also called Favourite Icon,Pageicon and urlicon.
The main advantage of creating and using favicon is ,it makes it easy to find your blog or site when someone favourited or bookmarked your site/blog among several other sites.
Most of the people use 16*16 pixel favicon(you can also use 32*32 pixel favicon) with ".ico" format.But,you can also use gif,png(image formats) aswell.
you need to do a quick google search free hosts available to host .ico files and with hotlinking enabled, there create an account which is totally free and then upload any image file (JPG or GIF or PNG or BTM) and it will automatically convert it to icon file, after converting they will provide a hotlink enabled to your icon file.
Now,go to your blogger dashboard>layout>Edit html
and look for this code(it is at the top the template)
<data:blog.pagetitle/> and add the given code which is given by your icon host just after the above one[as shown in the below screenshot]
That's it! Now you can see a beautiful favicon in your blog.
