A favicon (short for ‘favorites icon’), is the little icon associated with a particular website or webpage, shown next to the site’s name in the URL bar of most browsers.
Giving your blog an identity really matters and the default blogger icon makes your blog look like just any other blog around. To change the favicon, you first need to create a .png or .ico image about 16X16 or 32X32 pixels and upload it on image hosting sites like tinypic.com, but I actually prefer uploading my stuffs to opendrive.com
You can use any other site you know as long as you can hotlink the image url.
1. Create a .png image about 16X16 with your image editing software or you can create a favicon online from Genfavicon.com or Favicon.cc.
2. Upload your icon to a host and make sure you have the direct image url.
3. Login to your blogger account and click on design
4. Click on Edit HTML
5. Press CTRL + F and serch for
<title><data:blog.pagetitle/></title>
6. Paste your icon url in the line just below it as shown in the image below
7. Save your changes.
Now view your blog and you’ll find out the default blogger ‘B’ logo is replaced by your new image.