Start with carefully unplugging it (connector is often brittle) and see if you can gently snug it up with a 6 point socket. This would be in case someone replaced it before and maybe didn't tighten it enough. Don't go crazy; it's NPT (tapered thread) so if it's gonna seal, it will do it before you go animal tight and break it off.
If that doesn't help and you need to replace it, do it with the engine cold as obviously, some coolant will spill out. Have the new sensor ready to go. Be sure you buy the correct one as they're different based on engine, year, type of transmission, etc. Don't add any kind of sealant or thread tape to it, again it seals by design of the threads, although the new one -might- have a little thread compound already on it.
EDIT - cranking my head sideways to look again, I'd almost wonder if it's really the knock sensor that's leaking. Can you see it 100% for sure that it's leaking there? I'm more inclined to think it's the expansion plug past it closer to the starter, which is fairly common to leak once they get some age.
Richard