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Altar of Blood is a new block from Harken Scythe. It requires a Blood Crucible 1 block away from it (Similar to enchanting tables near bookshelves, but obstructions don't affect the Altars)
It is used for to turn Wool of any color into Bloodweave. It will cost 10 Blood per piece of wool to do so.
You can also "Attune" a book for 100 Blood to make an Enchanted book with Blood-based enchant. However, due to Enchanting Plus in Hexxit, enchanting using this method is not recommended.
You can also germinate Biomass seeds in order to make Biomass tools/armour