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I'm thinking of installing a cold air intake in my Civic. My uncle in law says it's a bad idea because it'd burn out the o2 sensor. I'm a bit skeptical about his statement but I don't think it would hurt to find out before I spend any money.

 
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This makes no sense. A CAI will allow cooler air to enter the combustion chamber thereby increasing the O2 content of the air/fuel mixture. The O2 sensor measures the O2 content in the exhaust cases, feeds that back to the computer, and the computer then adjusts the fuel content. At best this may increase your horsepower by 5HP when you run the engine somewhere over 4000rpm.

I don't see how this could "burn out" an O2 sensor. Just what does that mean, anyways? It catches fire or overheats? How? With all respect to your Uncle in-law - I call BS on his assertion. Ask him to explain.

 
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See that's what I was thinking as well. It just sounded suspicious. He basically told me this tale about someone getting an Eagle and doing that and it burned out his sensors.

Honestly I think he was just telling a tale because he probably sees that kind of thing as a waste of money.

 
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Well he might be right about it being a waste of money. Most intakes only add power at high rpms and usually not more than 5hp. The stock intake delivers better power in the lower rpm range because its small pipe design promotes more air velocity hence better combustion chamber evacuation.