Armorers created blackened steel in the Renaissance with linseed oil. They heated the steel and applied the oil in much the same fashion described by "grahame-white" above. It probably is a little less toxic than old motor oil, and because it requires multiple applications, allows for a broad color range of "blackening" .
HI
When I did O Level metal work at school. we were taught a blackening method for mild steel. This involved heating the metal to a blue heat and then quickly immersing in old engine oil. - I bet they do not teach that method any more....( fumes and hot working...) It did however make a very pleasing finish.....
Look into the work of Ron Young of Sculpt Nouveau. He works out of Escondido in San Diego County, CA and has posted videos on Youtube.
http://www.mmsonline.com/articles/do-it-yourself-cold-blackening
I have no idea, but a bit of research uncovered it's to do with:
Basically, the blackening process choice for shops is hot or cold. Hot oxide uses a caustic soda bath operating at 285 to 290oF. Generally, these tanks are gas fired to keep the caustic soda solution at a boil. Obviously, working around these tanks is unpleasant, which is one reason why many shops with hot lines opted to remove them and sent the work out.
It's seems every shop does it slightly different, which maybe why they keep it a secret.