IceCat shows ASCII-compatible encoding (ACE, roughly Punycode) for so-called internationalized domain names (IDNs) instead of displaying them properly—e.g., <https://xn--drivation-b4a.fr/> instead of <https://dérivation.fr/>.
I believe it purposefully has a white list of the kind of IDNs it accepts to display properly (to avoid phishing). In ‘about:config’ there’s a set of ‘network.IDN.whitelist’ Booleans, which suggest the example above should work, but for some reason it doesn’t. Ideas? Ludo’.