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It is junk, in the sense that it is a low-value item that cannot be used in smithing, enchanting or alchemy. However, it can be sold to general goods stores (e.g. Belethor's General Goods in Whiterun, Bits and Pieces in Solitude). It can be found in tombs all over Skyrim, as well as various other places, usually near corpses, Skeletons or Draugr.
- It appears that the ancient Nords used these as a part of the preservation ritual of the draugr; they were known to have been very skilled at preserving their dead.