Units with Fire Shield deal damage to creatures that make attacks against them1). Even attacks that do not hit will trigger fire shield; however, abilities which stop attacks from happening in the first place (e.g. Awe) will by extension prevent Fire Shield from dealing damage.
Fire Shields do their listed strength in magical, armor-piercing
fire damage, and never miss. The base damage (before DRNs) dealt is reduced by the Length of the attacker's weapon, however.
Some troops, commanders, and pretenders have an innate, persistent Fire Shield. This can be boosted by empowerment or by giving them additional levels of
Fire in pretender design; the damage boost is +1 for every level of Fire more than what they started with.
The Fire Shield spell gives the caster a Fire Shield with a strength of 9, +1 for every level of Fire they're overcasting it by. It is a Level 3 Enchantment that requires
1 and zero gems to use.
Then there's the Fire Shield bless; this provides a Fire Shield with a strength of 7, +1 for every level of Fire the blessed subject has.
Last but not least, there are a few items that provide a Fire Shield with a strength of 9; these items are the Charcoal Shield (Construction 5,
2
1, 10
5
), the Carmine Cleaver (Construction 7,
2
1, 10
5
), and the Crown of the Fire King (Construction 9,
4, 25
).