What a WebP file actually is
WebP is Google's 2010 format, derived from the VP8 video codec. It offers both lossy and lossless modes and, unusually, supports transparency in both — the reason it can replace JPG and PNG with one format. Google's own comparisons put it roughly 25–35% smaller than JPEG at matched quality.
Files usually arrive as WebP because they were saved from a website: browsers and CDNs serve it widely, so 'save image as' on a modern site frequently produces a .webp you then cannot open in the application you needed it for.
What you get from ICO
ICO is a container that holds one or more small square images, with transparency, for use as an icon. It caps out at 256×256 — anything larger has to be scaled down, and the format is not intended for general pictures.
Every browser requests /favicon.ico by default, with no HTML required, and Windows uses ICO for application and shortcut icons. It is a narrow format that is completely reliable inside its niche.
What changes when you convert WebP to ICO
An icon is being built here, not a picture converted. The WebP is decoded, scaled to fit within 256×256 and stored losslessly inside the ICO container — so whatever compression artifacts the original carried are preserved faithfully, then shrunk to the point where nobody will ever see them. Detail is lost to the scaling, which is the intended outcome.
Transparency survives intact. Both WebP and ICO carry a full 8-bit alpha channel, so cut-outs, drop shadows and anti-aliased edges convert without a white box appearing behind them, and the result still composites cleanly onto any background colour.
ICO cannot exceed 256×256, so anything larger is scaled down to fit while keeping its aspect ratio. Work from a square source if you can — a wide image gets letterboxed into the square, and fine detail disappears entirely at the 16-pixel size a browser tab actually renders.
WebP as an icon source is almost always a file that came off a website, so check what you have before committing: it may already be a downscaled thumbnail rather than the original artwork, and upscaling it into an icon will look soft at every size. If the WebP was saved in lossless mode — likely for a logo or screenshot — the pixels are pristine and it makes an excellent source. If it was lossy, look for the design file before settling.