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Favicon is a term that came from the phrase
"favorite icon" and has been abbreviated over
time. A favicon appears in the navigation bar
of the web browser (in browsers that support favicons)
and give websites an added professional look.
The web browser simply looks for a file named
"favicon.ico" on the domain the web page is located
on. If the web browser sees a file it will display
the image in the address bar.
Initially favicons were displayed with bookmarking
to act as a visual reminder, helping the user
recall the websites that they bookmarked. Webmasters
in the past would look at the favicon access in
their web logs to determine how many people had
bookmarked their website. Now, because the majority
of web browsers support favicons, the favicon
accesses that are available in the web logs are
almost irrelevant.
The favicon.ico file contains multiple image
resolutions and image color depths. The most common
formats included in the favicon ico file are:
16x16, 32x32, 64x64, and 128x128, with varying
color depths.
The favicon is often a symbol or trademark that
represents the company or product associated with
a particular website. Favicons are not a necessity
but they add a professional polished look to a
website.
Create a Favicon:
Use this free web resource. Upload an image and
download a favicon generated from the image. http://www.html-kit.com/favicon
Create very basic favicons from scratch http://antifavicon.com/
Sample Favicons:
(Please note the images above
are simply graphics and are not ico files.)
Screen Shot of Favicon:
Related Articles:
What to
Look for in a Logo
Finding Software
Icons
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Developer
101
What is a Favicon 
