Looks sort of like the wooden mallet I use to pop the cover off of 
mainspring barrels. A tap on the end of the arbor pops it right off 
leaving small pock marks on the mallet face. Another possibility is 
tapping small objects in a milling vise to ensure the work piece is 
firmly seated before giving the vise a final tightening.
It is a neat mallet and I'm sure you will find some use for it.

Troy