You may have noticed that some websites have a little small icon that appears in the web address at the top of the page. The little icon name Favicons. This also appears when you save the link in your browser.
Why do I need to make a Favicon for my Blog? Because browsers like Mozilla Firefox also display the favicon in the address bar on every visit, so your site looks more professional and personalized.
Here is the Step by Step Instructions
1. Login into your Blogger acoount
2. Go to "Template" > "Edit HTML"
3. Find </head> tag CTRL+F
4. Above </head> tag paste the following code
<link href='URL of your icon file' rel='shortcut icon' type='image/x-icon'/>
5. Repalce URL of your icon file with your Favicon icon URL
6. To create your own Favicon icon go for this free site www.iconj.com Remember to use icon with .ico format
7. Upload Photo and generate the Favicon icon file
8. Now paste the code Above </head> Tag
9. Save your Template and you are done.