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This is a common problem on the web - it is not specific to Yola. The following may work:
1. Create a favicon.ico using an online program such as http://www.favicon.cc/
2. Download the file to your computer and then rename it myIcon.ico (this is important - it may fix the problem by not having it named favicon)
3. Under Site > Site Properties >Favicon>Upload a new favicon> try selecting the new file and republish your site. If this doesn't work then #4 may help...
4. Put the following under Site > Tracking > Site Tracking Code > enter the following under the header code box.
<link rel="shortcut icon" href="resources/myIcon.ico" type="image/x-icon" />