by 
The Curious Bag
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The front oxygen (O2) sensor is your car's primary means of monitoring the engine's air/fuel ratio. This measurement is crucial to fuel economy and overall engine performance.
History
The oxygen sensor was first developed by Bosch during the late 1960s and was first installed on a car by Volvo in 1976.
Function
The O2 sensor uses exhaust gas temperature to determine whether the engine's air to fuel ratio is above or below the ideal 14.7:1 ratio. Hot exhaust means too little fuel, and cold exhaust means too much.
Construction
The O2 sensor uses an element made of zirconium dioxide, which creates a small electriconic signal when exposed to heat. The engine control computer reads the signal strength as an indicator of temperature.
Malfunction
The surest sign of a failing front O2 sensor is a check engine light, accompanied by a bluish haze of exhaust smoke under hard acceleration and a strong odor of gasoline.
Location and Replacement
The front O2 sensor resembles a spark plug and is usually mounted either in or very near the exhaust manifold junction. The sensor simply unscrews from its threaded exhaust bung.
Source:
Dnd-automotive.com: How Does an O2 Sensor Work
Widebando2sensor.com: Wideband O2 Sensor FAQ
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