It's called a finderscope. It is a little refracting telescope - probably around 8x50 - ie. 8 times magnification and a 50mm objective lens (the aperture). It has a wider field of view than your main telescope/eyepiece combination, so it's easier to locate an object (or a location in a recognised star pattern) and centre it on cross hairs, then move to your main scope to see it. Of course, you need to align those cross hairs so that your main scope is pointing to the same location. Your manual will have instructions.
You'll see it comes off the telescope. Take it off and experinment with it - maybe during the day (WATCH OUT FOR THE SUN). You may need to get it focussed for your eye (or eye with glasses). That is done by winding back the locking collar on the objective lens end of the finder, and then winding the objective lens in or out until it is focussed on a distant object (a tree in the distance, a mountain top?), then winding back the collar to lock it there.
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