Healing is used in conjuction with Anatomy with bandages to restore health, cure poison, or ressurect ghost players. 60 Healing and Anatomy allows you to cure poison. 80 Healing and Anatomy allows you to ressurect ghost players. To use the skill double click on a bandage and select your target.
Gideon's Advice: Healing is an incredibly useful skill and I have it on most of my characters. Start with 50 if possible or purchase it from a healer NPC and train it to 100 while sparring with another character or healing them while they work on Magery. Make sure to stockpile a lot of cloth by gathering cotton, flax, or wool as it will save you a ton of money and makes training characters easier.
Healing Mechanics (as of Patch 67)
Heal / Cure Yourself
Formula: 8 Seconds + (.5 Seconds * (120 - Dexterity / 10)
♦ 30 Dex = 12.5 seconds
♦ 50 Dex = 11.5 Seconds
♦ 80 Dex = 10 Seconds
♦ 100 Dex = 9 Seconds
Heal / Cure a Pet or Player
♦ Over 100 Dex = 3 Seconds
♦ 81-99 Dex = 3.5 Seconds
♦ 51-79 Dex = 4 Seconds
♦ 26-50 Dex = 4.5 Seconds
♦ Under 25 Dex = 5 Seconds
Ressurecting a Pet or Player
♦ Over 100 Dex = 8 Seconds
♦ 81-99 Dex = 8.5 Seconds
♦ 51-79 Dex = 9 Seconds
♦ 26-50 Dex = 9.5 Seconds
♦ Under 25 Dex = 10 Seconds