Hi MamaMoose,
A favicon is the little image that is displayed beside the web address in the location bar. I circled it in the image above. It is a special file that is placed on the server and a special line of code on a web page tells the browser to show that file instead of the default one that normally appears there. This little icon is supposed to be displayed in the favorites list also, once a page with one has been bookmarked. It's nice if well done because it makes a bookmark easier to see in the list.
see ya,