Heating oil is a common source of heat in the northeast and mid-atlantic. In the northeast especially, outside of cities. In these locations, there's not natural gas, and it gets too cold for heat pumps to be particularly efficient (Electricity in those areas is also quite expensive) Many homes, for example the Levitt homes built in that area had a boiler that performed double duty. They heated the home by circulating water through baseboard radiators, or with pipes mounted directly in the concrete slab (radiant floor heating...very comfortable) The boiler also heats the domestic hot water too.
In some early cases, there was no separation between the DHW, and the HHW. THe only difference was that the circulator pump wouldn't start when there wasn't a call for heat. Still, when someone took a shower during the summer, the radiators would still warm up a little, and in many small homes, the boiler was installed in a living space like the kitchen. For newer boilers, there's usually a DHW loop to separate the DHW from the HHW. This allows valves to be installed in the HHW loop that can be turned off during the summer, and also allows HHW to be glycol, and the DHW not to be tainted with the "stale" HHW.
An oil burner is quite an interesting device. Fuel oil for furnaces is actually the same as diesel fuel. The only difference is that home heating oil is not taxed. If you throw a match into a pool of heating oil, the stuff will not explode or burn, but will put the match out. Despite the fact the stuff is not explosive, when it actually does get to burning, it carries the most BTU's per part of any fuel source, and is still a value, even being sold at around $2.00 a gallon. It's very watery, thin stuff, and would probably make a very poor lubricant. Some of the oil suppliers around here also sell pure bio-diesel and bio-diesel blends for home heating use. Bio-diesel is made from vegitable oil instead of petroleum.
A typical "gun" oil burner, like a Beckett has a motor on it that does two things. It pressurizes the oil to about 125-150 PSI, and then sprays the oil through a nozzle to atomize it. It also has a blower on it too. Air is also forced into the sprayed oil for optimal combustion. The end of the burner frequently has a flower shaped device that shapes the spray pattern of the atomized oil and air spray. It varies depending on the furnace the burner is installed in. On the top of the oil burner is a high voltage transformer similar to a neon light transformer. Right at the end of this flower shaped piece is also too electrodes that produce an arc from this transformer. This ignites the spray of oil and produces the bright yellow flame.
These electrodes wear out, and eventually, will have a hard time maintaining an arc, and thus keeping the burner lit. An electrode inside the burner detects light from the flame, and if the flame goes out, it will trip a circuit breaker causing the burner to shut down. This keeps the oil from flaring up if it builds up in the furnace because it's not being burned. The oil may also not light properly if the nozzle is dirty. If this occurs, atomization does not occur as effectively, and the electrodes have a hard time igniting the larger droplets of oil.
Oil furnaces are not as popular as they used to be because of efficiency issues, and price issues. Although heating oil has a tremendous amount of BTU, it is not burned efficiently, and the furnaces and boilers designed to use it are not as efficient at transfering the heat energy into the heated space as a gas furnace. Electric heating systems can be considered 100% efficient because all the heat produced goes into the conditioned space. Oil furnaces are only about 85% efficent at best, good gas furnaces though are about 92%-95%. The burner is also not efficient at extracting all the heat from the fuel. Traditional gun burners burn with a yellow flame. The yellow comes from iridescent soot during incomplete combustion. Of course a blue flame indicates complete combustion, and until recently, blue-flame oil burners were just too expensive for residental use. There's also the issue of the motor and ignitors, which in a traditional gun burner, consumes about 300 to 500 watts. Blue flame burners could use up to 1000 watts or more, so electrical consumption can end up negating efficiency and the BTU benefits of oil heat.
Some older oil furnaces resemble kerosene heaters. My home had something like this when it was originally built. these are entirely simple devices that do not require any electricity to oparate at all. The furnace has a round wick in the bottom of it and a duct to draft air into towards the wick. The burner is surrounded by a metal heat exchanger that transfers the heat to the interior of the home without allowing in fumes. The bottom of the furnace is open, allowing air to draft into the burner side of the heat exchanger and allow combustion, and to allow a convection flow of heat into the home. Thermostat control of these units was performed with a thermocouple or a bi-metallic strip that would raise or lower the wick depending on the setting. The furnace however could not be shut off completely when heat wasn't necessary. In larger homes with basements, these furnaces were a version of the common old "octopus" furnaces that had ductwork to direct the convection heat to the individual rooms (no forced-air fans) In smaller homes, like mine, the air was drafted right out the crawl space, and there was no ductwork, just a grate in the hallway. Obviously , this was terribly inefficient and depended on the home being a bit drafty and leaky. Remember, we are talking about 1951, and oil oil was only a few pennies a gallon, so it wasn't an issue!