Purchased an iPad and this strange looking iPod was included for free.

That's not an iPod, its a First Generation Apple Remote. Generally used with a First Generation Apple TV and Macs equipped with an IR sensor: Identify your Apple TV remote - Apple Support

Doesn't really have anything to do with an iPad. No IR sensor on the iPad for it.

If you have no use for it it, sell it. I'm sure someone may want it. It looks functional enough.

Without knowing exactly what it is, its hard to say.

See this support document to try to identify it: Identify your iPod model - Apple Support

Also a picture would help us identify what you have.