I would be inclined to call it an indexing head rather than a dividing head.
You can use it in two modes: with the worm engaged and with the worm disengaged.
A normal dividing head would have the dividing plate and sector arms on the end of the worm, where the handwheel currently resides.
Hence with the worm engaged it is more use for milling circular features on parts held in the chuck.
With the worm disengaged, you pick a hole circle that is a multiple of the the number of divisions you want, set the locking pin to the radius of that circle and drop it into the hole to index. You can turn it by hand from hole to hole or use the worm and handwheel but the latter will be quite slow. To ensure you do not drop into a hole you do not want, put insulation tape over the surplus ones in the circle or bung them up with a foam plug.
Have a look at the George Thomas one at Hemingway kits to see the principle of operation (his only has one hole circle on the end of the spindle, whereas your own has multiple hole circles).