The favicon is the little icon that is on the far left of your browsers address bar and also on the tab next to the websites name you are viewing and in bookmarks. Changing the favicon from the blogger logo to the cute little typist girl was easy. First I went to Free Favicon Generator and simply uploaded a photo from my computer. You can also use one of their premade animated favicons if you don't have a suitable picture to use.
Once you have uploaded the photo they will even host it for free. Use the code in the second box and highlight and copy it. Now go to your blogger layout page and go to edit html. Back up your template before doing any alterations. In your template you will need to scroll down until you find something like the html tag < head >. Paste the file underneath that tag then click preview. If every thing looks alright you can then save.
You can also do this on wordpress and other webpages. Here are some additional resources to help you out.
How to Add a Favicon in Wordpress Blog
Dummies' Guide to Google Blogger
Putting a Favicon on your website