Favicon is a small icon associated with a website, typically displayed in the browser tab or address bar. It is created by taking a logo image and converting it to a 16x16 or 32x32 pixel favicon file format like PNG, GIF, or ICO. To create a favicon, a website owner uploads their logo to an online favicon generator, selects the 16x16 pixel option, downloads the generated favicon.ico file, adds the favicon code to website page headers, and uploads the favicon.ico file and updated pages to their website. Once complete, the favicon logo will display next to the website URL.