You can restore a close tab with History > Recently Closed Tabs. The list has a limited length (just guessing, 20) so in time tabs will disappear from the bottom as new tabs are added. When searching history (ctl+shft+h), you can click on 'location' to sort entries by 'location'. That may be the best you can do. The short answer to your question is probably no: https://support.mozilla.org/en-US/questions/747449

You can look at session manager extensions.

• https://addons.mozilla.org/firefox/addon/tab-session-manager/
• https://addons.mozilla.org/firefox/addon/my-sessions/
• https://addons.mozilla.org/firefox/addon/session-boss/

Is it possible to archive a tab, like saving a bookmark, but to also preserve history of that tab? That means I can later bring the tab back and move back in history of that tab.

Not really. You can back up a session history file to retain the information, but there's no way to restore just a tab or small part of a session, it's all or nothing.

That said, perhaps there is a "tab history" that records every URL opened in every tab. (That might include URLs that are not in Firefox's back-forward tab history because going forward to B, back to A, forward to C erases B, but maybe that's okay for your purposes.)

To complete the thought, then the extension could "replay" the history by loading each page in sequence in the tab. Probably would take a lot of time.