Favicon or site icon stands for "Favorites Icon" and is associated with your site.
A favicon or site icon also helps to improve the speed of your website.
IMPORTANT:You must use a PNG picture
Choose from your computer a PNG picture or make one using Snip(for snip tool you go in Start, then type Snip in the bar)or other program you like.
I used Snip because I had the picture in JPG and I wanted to make it PNG(Thanks to Marion Black suggestion).
I used IcoFX to create the favicon, for details go in Marion's training:
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Ultimateless
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Just a quick heads up for Mac users, they can use preview (free on Macs) to create a png image...thanks for this Dorina, you are becoming quite 'techy'...