Emotes are a way to communicate by an action, not directly saying something. For example, your character can nod his head yes instead of physically typing or saying "yes."
How to use an Emote
To display the Emote Wheel press and hold one of the emote keys and the wheel will pop up.
How to Rebind an Emote
After making this item put it into your inventory and use it (Use Item), it will unlock the "Heart" Emote!