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When you scroll to that weapon that the mod fits onto, you can begin changing its properties. The list of things you can do with them will show up based on your perks, and what mods you've got in inventory for some specific aspects.
Don't confuse this use of the word "MOD" with externally found modifications to the game... it's so darn stupid that the industry didn't step in and actually use new wording here but in-game mods look like little balsa wood boxes, and say what they are when you pick them up. External 'modded game' mods are things you download separately.
You can scrap weapons and armor at their appropriate crafting benches to get the raw materials needed to improve or change your existing stuff.
Edit: Or as Zekiran said, find already existing modifications. You can remove a modification from a weapon and attach it to another weapon of the same type.
The little boxes? Its so you don't have to invest in crafting perks. The crafting perks allow you to create any of the modifications, so you can get exactly what you want. But you have to invest perks and crafting materials into them. And if I remember right, the leveled lists are structured so that the modifications start appearing in the world before you have reached a level where you are capable of making them yourself. You just aren't guaranteed to ever actually find the specific modifications you want.
As for being worth using, some are and some aren't. All weapons have ones that boost damage, for example. Those are always useful. Larger magazine sizes as well. Turn a minigun into a decent melee weapon with a Shredder modification (but you need to have no ammo for the minigun in this case). Though there are some that aren't all that great, like switching a hunting rifle to use .38 ammo (resulting in a damage reduction). Or slapping a bayonet on your missile launcher.