It's a speed indicator. Hold the tip against the end of a rotating shaft for a measured time, read the total revolutions off the dial, and calculate the RPMs. Google "speed indicator" and you will probably get lots of info.
I got one of those for almost nothing at a farm sale. Like yours, mine came without the wheel. So it will measure rpm if you can put it into a center hole in the shaft. But with the wheel you can measure surface feet per minute. So I turned a wheel like Tubalcain did for the video below. It will be fun to use with our boys when they're old enough to learn gear math, then we can compare theoretical vs. actual rotational velocities and surface feet per minute, working the gear math in between.