Piezo elements come in handy when you need to detect vibration or a knock. You can use these for tap or knock sensors pretty easily by reading the voltage on the output. They can also be used for a very small audio transducer such as a buzzer.
A piezo is an electronic device that generates a voltage when it’s physically deformed by a vibration, sound wave, or mechanical strain. Similarly, when you put a voltage across a piezo, it vibrates and creates a tone. Piezos can be used both to play tones and to detect tones.
It won’t create enough voltage to illuminate an LED… Although something such as an Arduino could be used to sense the output of it. Here is a tutorial:
Understanding the deeper level behaviour of piezo-electric materials gets into some advanced physics quite quickly, I won’t pretend to understand them fully.
I would expect this piezo element to typically output on the order of 10s or 100s of millivolts.
I’ve found some more information on piezo electrics and FAQs Piezoelectric Basics - Piezo Support
This piezo element is the 7BB-20-6L0 I’ve highlighted it’s entry in the datasheet below.