E85 is 104-105 octane and can tolerate a higher CR. It cools the intake charge better and therefore makes it more knock-resistant and it also makes the engine run cooler and to some degree, even safer. In most cases it's at least 5% more effícient than gasoline at the same lambda value (up to 25% more efficient on some cars optimized soley for E85). Since E85 has very good cleaning properties as well as leaving behind a by-product of water, it is cleaning the fuel system and it will keep the injectors nice and clean. The combustion chambers, valves, ports and the exhaust will also be cleaner, almost like the car had water injection. In most cases it will cost less $/mile to run on E85.
The down side of E85 is moisture and is a little harder to start in cold weather. It also requires about 42% more fuel to reach stoichiometric, or ideal air fuel ratio. So the stock non-E85 fuel injectors and pump will need to be replaced. You would need injector data segment swap in the tune and also add fueling to VE map and could also add more timing. Issue is for us in the Midwest, E85 isn’t so easily sourced and winter it’s almost useless. So unless you installed a fuel composition sensor and used a flex fuel ECM that would switch between the maps, it’s more of a pain than it’s worth.
The good thing is the O2 sensor doesn't care what fuel its running. It doesn't even know. It will make adjustments to run a 14.7:1 AFR, or Lambda 1. E85 is 9.765 stoich, or Lambda 1. So your O2 just looks for Lambda, not AFR.