When touchscreens were still an unfamiliar object, a button that looked pressable like a real button, or a camera icon that looked like an actual camera, let people intuit what a thing did without being taught. Skeuomorphism existed to cut that learning cost.
Visually it means gradients standing in for metal or glass gloss, inset/outset shadows for depth, leather- or wood-grain textures, and animations that mimic real paper curling or turning. iOS's Notes app (yellow legal pad), Game Center (green felt) and iBooks (wooden shelf) are the textbook examples.
It receded sharply when iOS 7 switched to flat design in 2013, but it never fully disappeared — instrument-emulator apps and casino games, where feeling "real" is the entire point, still lean on it.
When to use
Use it locally where mimicking a real object is the point — instruments, card games, calculators. Applying it across a whole UI adds weight and maintenance cost for little benefit.