What is BMP?
BMP is the Windows bitmap: pixel values written out with essentially no compression, which makes the files enormous and the format trivial to read. It survives in Windows tooling, embedded systems and anywhere a program wants image data without a decoder in front of it. Rows are stored bottom-up.
What is ICO?
ICO is the Windows icon container, and still what a browser fetches when it asks a site for /favicon.ico. One file can hold several sizes at once so the system can pick the right one; each dimension is stored in a single byte, which caps an icon at 256 pixels.