The primary purpose of this item is for Transmogrification. In 2016, the two-handed axe dropped from the Mysterious Chest in the Immortal Throne, only spawning in March. In 2017, the loot is only available after completing the event accompanying the Elder Chief Kanai at the aforementioned location during the last week of March (March 24-31).
It uses the same model as Skorn, hence the name, but has a brighter, fiery red glow.
As a Normal item, it can be traded among players once acquired.