A Tinder Drill is used to start fires in any lightable object, such as: Torches, a Pile of Wood, Fireplaces, Meat Smokers, and others.
Tinder Drills are consumed when they start a fire, and also have a 50% chance to break before a fire is successfully lit.
To use a Tinder Drill, merely pick it up and right click the item to light.
It's suggested to keep two or three of these on hand just in case of one breaking.
Tinder drills are very slow and unreliable at starting fires. Most players use tinder drills to light a fireplace or stove and keep that fed through their play sessions. For additional fires, a Torch can be used.
Players with access to iron may want to consider Flint & Steel.