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You can then trade this for Hats or stranges you want in the game.
I recommend using backpack.tf or Outpost for prices.
When you buy a key in TF2, you can sell it for 16 refined metal (this is the current price, and is subject to change sooner or later). With the 16 ref you earned, you can trade with players for various cosmetics (each cosmetic is priced averagely around 1.66 ref).
You can also unbox a crate, however, I HIGHLY RECOMMEND YOU DO NOT DO THIS, as what you unbox has a 99.99% chance of being less value than the key.
Edit: Also, what Blackjack said ^. Most traders in TF2 use the prices in backpack.tf.
Edit: You can buy most strange weapons for less than a key, you can buy plenty of low-end stranges for a key.
There is quite a number of items you can get with a key, to be honest. Do a google search like let's say "Tf2 pyro cosmetics" or "Tf2 soldier cosmetics" and see which cosmetics you would like. If you plan on tracking your kills, you can get "Strange" weapons, which count your kills.