Browse to the file's location on your computer to select the image and press Upload Image to Generate Favicon button to generate a favicon for your site. Use a gif or png with transparency if you require it. Maximum upload file size limit is 2 MB.

Favicon
A favicon (short for favorites icon), also known as a shortcut icon, website icon, URL icon, or bookmark icon is a 16x16 or 32x32 pixel square icon associated with a particular website or webpage. Browsers that provide favicon support typically display a page's favicon in the browser's address bar and next to the page's name in a list of bookmarks

Browser support
Once you have created your favicon.ico file, upload it to the root directory of your website and put the following code in the header of your html page. The following format is cross-browser compatible and is supported by Internet Explorer, Firefox, Chrome, and Opera.
<link rel="shortcut icon" href="http://www.example.com/myicon.ico" />
or
<link rel="shortcut icon" href="/myicon.ico" />

Support Image Formats:

• Bitmap Images (bmp, rle, dib)
• Exchangeable Image Files (exif)
• GIF Images (gif)
• JPEG Images (jpg, jpeg, jpe)
• Portable Network Graphics Images (png)
• TIF Images (tif, tiff)
• Windows Metafile Images (emf, wmf)

Online Favicon Generator Information:

• Purpose of this Tool : Convert Image to Favicon
• Intended Audience : End Users, Graphic Designers, Webmasters

External Resources:

• How to Add a Favicon to your Site
• Favicon